For claiming tax exemption for telephone bills(telephone allowance), is it mandatory to have post paid connection?
1 Answers
Hi,
I believe that allowance can be claimed on a Pre-paid mobile connection as well.
However, the following conditions are to be considered in this regard.
1. Telephone connection includes both land line and mobile connections.
2. There is no explicit reference to the maximum number of connections allowed, in the rule. Organizations typically allow one land line and one mobile connection.
3. The connections have to be in the name of the employee.
4. Employees should submit telephone bills to their organization while seeking telephone reimbursement.
5. Expenses incurred towards both pre-paid and post-paid mobile connections are admissible for tax exemption.
Its upon the company may devise a policy and fix an upper limit up to which telephone reimbursement will be made.
Till march 31st my company was accepting both prepaid and post paid bills.But this year we got instructions to submit only postpaid bills.Is there any change in rule for FY 2018-19?
Hi..As far as I know there is no change in the LAW.. may be, this is an internal change of procedures in your Organization. Kindly contact your employer.
Thanks
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