Internet alliwance
8 months ago
I get internet allowance in my salary slip is it taxable or not?
Amt is rs 1000 per month
A.Dear client,
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:
Landline bills
Mobile phone bills
Mobile internet bills
Home Wi-Fi connection bills
According to government 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.
Now, there are a few things which need to be kept in mind:
Companies usually provide reimbursements for only one mobile/broadband connection.
The connection needs to be in the employee’s name.
Employees need to show their telephone/internet bills while claiming the reimbursements.
They can claim the reimbursement on the actual bill amount or the total amount offered by the company, whichever is lower.
Both prepaid and postpaid mobile/internet connections are applicable for exemptions.
The scope for providing reimbursements will differ across companies. It will also vary across departments based on the employee’s job role and his/her position within the organisation.
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:
Landline bills
Mobile phone bills
Mobile internet bills
Home Wi-Fi connection bills
According to government 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.
Now, there are a few things which need to be kept in mind:
Companies usually provide reimbursements for only one mobile/broadband connection.
The connection needs to be in the employee’s name.
Employees need to show their telephone/internet bills while claiming the reimbursements.
They can claim the reimbursement on the actual bill amount or the total amount offered by the company, whichever is lower.
Both prepaid and postpaid mobile/internet connections are applicable for exemptions.
The scope for providing reimbursements will differ across companies. It will also vary across departments based on the employee’s job role and his/her position within the organisation.
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