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Take an example where the employer has directly made payment to the training institute for training the employee. What would have been the income tax implication in this scenario?. No question of taxability would have arisen in the hands of employee.
Returning to your question, it purely depends on the employer whether to consider that reimbursement as taxable in the hands of employee or not. There is no any specific provision written in the Income Tax Laws about this. Income Tax Laws has given full resposibility to employer for deduction of TDS on payment made to employees by him. Practically, payments made to employees, without any ceiling limit, in the form of reimbursements are not treated as income of employee by employer except for medical reimbursement where the ceiling limit is Rs. 15,000/- and hence TDS is not deducted on those payments. But the condition for exempting such payment is that the proper proof has to be submitted to the employer. For employer such payments are allowed as expenses they are incurred for advancement of business by increasing efficiency of employees through such training. |
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