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Taxability of Pick-Up and drop facility provided by employers?
Case Law Details
- Case Name
- M/s. Transworks Information Services Ltd. Vs The Income tax Officer (TDS) [ITAT Mumbai 'E' Bench]
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2005-06
- Courts
- All ITAT, ITAT Mumbai
PICK-UP and drop transport facility provided by employers is not a perquisite and hence not liable to tax, according to a recent ruling by a tax tribunal. In a decision that has implications for the sectors such as BPO and IT, the Mumbai Income-Tax Apellate Tribunal (ITAT) has held that companies providing such a facility were not liable to deduct tax on the expenditure incurred on it.
ITAT has held that a specific explanation had been provided in the Income-Tax Act, which does not consider transport facility provided by employer to employees from residence to office and back a taxable perqu...
Can Tribunal decision be extended to cover the employees who are paid conveyance allowanace in pay slip(exempt upto Rs 800 pm) and also reimburse the conveyance expenses for travel to office by a cab.
Kindly elucidate
If my company gives me RS 800 p.m. as conveyance allowance. But deducts from my salary RS 1250 p.m. for transport facility provided. What will be my eligibility for deducation of cconveyance allowance 800/1250?