[QUOTE=abhaybandekar;2097692
However, I think Vishal has different kind of thoughts, in his mind. Everything is fine, till reimbursement is done, and no tax is deducted, by the employer. But, when IT officer goes through his bank pass book, and there are credits to his account, paid by employer as reimbursements, it is not always possible to show that these are reimbursements. IT officer may insist that this is your additional income, apart from salary, say incentives etc. This query will be raised after two/three years of actual transaction. At that time, Company’s accounts/salary department, may not cooperate the employee, and he will be in trouble.
.[/QUOTE]
To answer to your point, the onus lies with the person who is making/crediting the payment and it his/their responsibility for deducting applicable TDS , if any, but not the recipient as per I.T. rules
From India, Lucknow
604However, I think Vishal has different kind of thoughts, in his mind. Everything is fine, till reimbursement is done, and no tax is deducted, by the employer. But, when IT officer goes through his bank pass book, and there are credits to his account, paid by employer as reimbursements, it is not always possible to show that these are reimbursements. IT officer may insist that this is your additional income, apart from salary, say incentives etc. This query will be raised after two/three years of actual transaction. At that time, Company’s accounts/salary department, may not cooperate the employee, and he will be in trouble.
.[/QUOTE]
To answer to your point, the onus lies with the person who is making/crediting the payment and it his/their responsibility for deducting applicable TDS , if any, but not the recipient as per I.T. rules
From India, Lucknow
Pom,
I think his worry lies elsewhere,
What if the file of the employee is taken up for scrutiny by the income tax authority.
That would happen probably 2 years later, when he may not even be in the same company.
But when the tax officer scrutinises your file, he is going to ask for explanation for every entry in the bank statement. He will then consider the additional payments (reimbursement) as income, unless the Employee has definite proof that it was a genuine reimbursement
From India, Mumbai
I think his worry lies elsewhere,
What if the file of the employee is taken up for scrutiny by the income tax authority.
That would happen probably 2 years later, when he may not even be in the same company.
But when the tax officer scrutinises your file, he is going to ask for explanation for every entry in the bank statement. He will then consider the additional payments (reimbursement) as income, unless the Employee has definite proof that it was a genuine reimbursement
From India, Mumbai
Can't help it. Normally, I.T. authorities are not behind the Salaried people who only pay the income tax correctly without any deceit and they show some leniency to salaried.
When I was in a reputed organisation some time back, the employer has facilitated to open 2 different bank accounts, one for crediting salary and other for crediting the reimbursements.
Pon
From India, Lucknow
When I was in a reputed organisation some time back, the employer has facilitated to open 2 different bank accounts, one for crediting salary and other for crediting the reimbursements.
Pon
From India, Lucknow
I think opening 2 separate bank accounts will make the transactions more suspicious.
Such a file will definitely be looked at with a negative light and the ITO will definitely add up payments made to the second account.
It is important instead to keep details of amounts claimed and reimbursed with copies of bills submitted to the office. That will probably be a better solution
From India, Mumbai
Such a file will definitely be looked at with a negative light and the ITO will definitely add up payments made to the second account.
It is important instead to keep details of amounts claimed and reimbursed with copies of bills submitted to the office. That will probably be a better solution
From India, Mumbai
We should not find any tricky way, to escape from the set system. It is a 100 percent truth that Reimbursements are not anybody’s income. If anyone honestly shows all bank credits in his IT return, there must be some official ways, to claim deduction also, for these reimbursed amounts. Also, by not disclosing these amounts, at all in IT return, but by signing an affidavit or declaration, which is to be attached to your Return, one can remain relaxed for the future. Only IT experts can throw some light on this.
From India, Mumbai
From India, Mumbai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
P-TAX.csv