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Fuel Reimbursement-Non-taxable, Regular cmponent based on employee grade.

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Hi Experts,

 

My client has fuel reimbursement as a non-taxable amount upto certain amount which varies from employees to employees.

 

This component is tax exempted upto certain amount varies from employee to employee.

 

It is part of 14 & part of total income not gross salary & a certain amount is paid on a regular basis to the employee  as taxable but as & when employees submits bills it becomes non taxable.

 

 

Can anybody please guide which would be the base component that should be taken as reference.

 

Should it be Conveyance Allowance or Medical Reimbursement.

 

Please guide.


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