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+--- Thread: Petrol reimbursement (/thread-petrol-reimbursement)
Petrol reimbursement - hi_toall - 07-10-2009
Can any body tell me about petrol reimbursementment. Is it taxable or not? If not under which section in ITO 2001?
- LapTop - 07-11-2009
Sub Section (2) of U/S 12 ITO
(d) the amount of any expenditure incurred by an employee that is
paid or reimbursed by the employer, other than expenditure
incurred on behalf of the employer in the performance of the
employeeâs duties of employment;
- faisal_desperado - 07-13-2009
Although LapTop has correctly quoted the section, had he explained the meaning ,no necessity would have been arisen for further explanation.
It has interalia been mentioned in the ordinance that those expenditures, which incur specifically for the purpose of employee's duties, are exempted from Tax.
In this regards, Reimbursement on account of fuel is exempt from tax ,if fuel is being consumed for the accomplishment of Duty, However if a fixed allowance is provided to an employee then this (allowance) will not be treated to be exempted.
Best Regards,
- hi_toall - 07-15-2009
Thanks