Reimbursement of telephone or mobile will come under tax exemption. If you put furniture etc. in the house for office work, then you can claim deduction on it. If you take training for self-learning or to enhance your skills, then you can claim tax on that expenditure.
The culture of work from home has increased due to the lockdown in the Corona period. Except in the field, most of the desk related work is being done from home right now. Companies are providing many facilities for this. Getting good money too. In such a situation, the question arises in the minds of people that if their company is giving money for work from, then if tax is deducted on it, then there is any way to get it refunded or not. If so what should be done for that?
To understand this in detail, first we have to know in which item the company has given money in the name of work from. The rule says that if the company has given reimbursement but it has been given as part of the salary, then tax will be deducted. If the money comes under the head of salary, then it is under the purview of tax. To return it, you have to see your income. If you are outside the tax slab then you can get refund after ITR. Otherwise, if you are in the tax slab, then you will have to pay tax.
Different rules of companies
Some companies are giving their employees internet bills, newspaper expenses, mobile phone bills etc. as reimbursement during work from home. If there is some such reimbursement, then you can save money by claiming tax deduction on it. But if the company has made the money a part of the salary, then the tax will have to be paid on the basis of the slab of tax in which the employees fall. Tax will be saved on this only if the employee works as a consultant in that company. The tax of the employee is deducted as per the slab of section 192 of the tax under which he falls.
Special rules for consultants
If the same employee is a consultant or is not a regular, then TDS of 10% is deducted on his salary. The consultant can get deduction on the expenditure incurred on his work by showing it in the ITR. But this rule does not apply for regular employees or employees of the company. Nowadays employees tell their companies that the cost of newspaper, mobile and internet etc. has increased in the work from. Therefore, some part of the salary should be given in the reimbursement of these expenses so that tax deduction can be claimed on it. Although companies have their own different policies, on the basis of which the work from money is either made part of the salary or in the form of reimbursement.
Will the government give some relief?
Companies give money in the hands of the employees as part of the salary, but the employee has to pay tax on it. This is causing dissatisfaction among the employees. The reason for this is that the government has not yet made any tax rules regarding work from home. It is expected that the government will bring it under the purview of the rules and regulations in the coming time. Its law was made in foreign countries only last year. The people there claim for tax relief in the backdate and they get the benefit of it.
What is the cost of discount
Reimbursement of telephone or mobile will come under tax exemption. If you put furniture etc. in the house for office work, then you can claim deduction on it. If you take training for self-learning or to enhance your skills, then you can claim tax on that expenditure. Similarly, if you take internet in the office at the company’s expense but use it at home with your own money, then you can claim deduction on it.
Leave travel allowance is exempt, but the maximum allowance will have to be spent up to three times. If you ask for tax exemption on house rent allowance in work from home, then you will not get it because if you have left the rented house and shifted to your house then tax will have to be paid. You can claim tax deduction on conveyance.
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