Hi,
Can you confirm whether telephone reimbursement / allowance is exempted from tax for individuals who have opted for new tax regime.
Regards
Suresh Babu B
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Hello Suresh,
Happy New Year 2024.
The community will be happy to guide you here but given the complexities of tax laws and individual circumstances, it’s always recommended that you consult with a tax professional or a chartered accountant to get exact calculations and advice.
Here is a very general guide:
As per Rule 3(7)(ix) of the Income Tax Act, all telephone/internet reimbursements which employees get for conducting their official duties are not taxable. Thus, individuals can claim a 100% tax exemption on the billed amount.
These reimbursements include the following:
- Mobile phone bills
- Mobile internet bills
- Landline bills
- Home Wi-Fi connection bills
As per the rules, there is no prescribed limit on the amount of reimbursement the employer can provide. However, it must be reasonable and as per the employee’s pay grade.
Hope this helps!
If you need more clarity on the tax saving instruments made available & other questions related to what & what not - Please feel free to refer to this [Parichay Webinar] (https://www.youtube.com/watch?v=7hNo2WUx2nI).
Community Manager
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