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Re: Fuel Reimbursement- Part of Total Income /430 not part of Gross /410-Payroll India.

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Hi Tania,

 

Its is just the other way round:

1) To add to total payout, like I suggested earlier, check cumulation class 1 for the wage type. This will add to monthly gross- No not a part of monthly gross from 0008 paid through 14/15 ( it should not be a part of gross).

 

a/ Do not add it to taxable income, which means do not select cumulation class 24 or 25 . This means that the wage type will not be added to /410, /411 or /430 or any /4 series wage types.- this wagetype should be a part of /430-series- total amount but not /410 (Monthly Gross*12Totalgross).


Requirement- This component is decided at at the time of hiring- Say employee is to get fuel reimbursement of 24000.

 

Each month he will get Rs2000, is he provides bill it will be non-taxable if no bill then it will be taxable- If at the quarter,mid/ end of the financial year he/she provides bills it exempt the amount.


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