Reimbursement Policy

A) Vehicle Maintenance Allowance & Reimbursement of Vehicle Expenses :

To avail the Tax emption Employee to submit the below documents

 Name: - Car should be in name on Employee only.

 Employee to submit RC and Employee name must be there in the RC. In the absence
of RC book, claim amount will be rejected and the total earned amount will be
considered fully taxable.
 Vehicle Log book to be maintained by employee in the format shared. % of official
usage mentioned would be given as tax exemption. Bills submitted and official usage %
(whichever is less will be considered as tax exemption).
 Bills includes: - Petrol bills, car servicing charges & insurance bills, toll charges, monthly
Car washing & driver salary. Only current FY bill’s allowed.
 Exemption amount will be total earnings under Reimbursement Vehicle Expenses or
VMA bills submitted whichever is Minimum.
 Employees in the Managerial cadre and using their own car for official usage and not
maintaining the car log book will get the tax exemption maximum to Rs.21600/- (Vehicle
under 1600 cc) & Rs.28800/- (Vehicle above 1600 cc). Bills submission to the tune of
Rs.21600/- & Rs.28800/- respectively.
 Also note, employees’ under the Managerial cadre who is drawing Conveyance allowance,
submitting the petrol bills and not maintaining the car log book, for such employees we
need to do the followings for tax benefit:
1) To convert their conveyance allowance to Vehicle Maintenance allowance
2) Copy of RC book is mandatory
 To provide tax benefit to the tune of Rs.21600/- (Vehicle under 1600 cc) & Rs.28800/-
(Vehicle above 1600 cc).

Paysquare Comments in case - If employee failed to submit any above documents then we will
reject the amount and we shall calculate the perq (as per Income Tax rule).

B) Car Allowance - Fully Taxable.

C) R-care Reimbursement: -
 Name: - Car should be in name of Company / Employee as per the Car lease agreement.
 Employee to submit RC and Employee name must be there in the RC. In the absence
of RC book, claim amount will be rejected and the total earned amount will be
considered fully taxable.
 Bills includes: - Petrol bills, car servicing charges & insurance bills, toll charges, monthly
Car washing & driver salary. Only current FY bill’s allowed.
 Exemption amount will be total earnings under R-care or bills submitted whichever is less.
  RCARE PERQUISITES: Employees would be charge Rs.21600/- for vehicle under 1600 cc and
Rs.28800/- for Vehicle above 1600 cc.

D) Driver Reimbursement: -
 Employees to submit the receipts in case they have Drivers and wages being paid
 Driver Perquisite will be as follows :
1. 10800 will be added to perq and full amount will be shown as an exemption
2. In case if bills not submitted 10800 will be removed from perq and total amount will be
shown as taxable

Paysquare Comments in case - If employee failed to submit any above documents then we will
reject the amount and we shall calculate the perq (as per Income Tax rule).

E) LTA Reimbursement : -

1. You need to Upload Scan copy Original Travel Bills (Rail Ticket/Air Ticket with
Boarding Pass/Bus Ticket) & should be of current FY only.

2. Summary containing family member’s details, travel details, leave details require.

3. LTA Exemption form to be filled and signed and upload along with bills as
mentioned
4. No Exemption in case of Foreign Travel (Travel out of India).

5. Exemption :
1. Air- Amount of air economy fare of the national carrier by the shortest route
to the place of destination
2. Train - Amount of first class rail fare by the shortest route to the place of
destination
3. Public Transport - Amount of first class rail fare by the shortest route or
amount spend whichever is less.

Paysquare Comments in case - If employee failed to submit any above documents then we will
reject the amount and we shall calculate as a fully taxable.