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WheTher TdS on All reimburSemenTS JuSTified?
Though the above said circular still holds to the recipient. However, if it is permitted
good yet the chargeability of the receipt is liberally then under the various heads of
the corner stone for imposing tax. When such income, the concept of reimbursement may
reimbursement does not have any income penetrate and could be abused by the taxpayers.
embedded therein, the validity of deducting At the same time, mandating tax deduction
tax at source does not seem to be justified. even on reimbursement of expenses does not
seem to be justified.
Conclusion lll
5. Reimbursement, as stated in the beginning,
does not have an element of income or profit
128 January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 22
