What Is Travelling Allowance?

Tax Deduction from Travel Allowance on Employee's Payment Summary, Tax Deduction at Source and Transport Benefit for Employees with a Disability of Lower Limb and more about what is travelling allowance.. Get more data about what is travelling allowance.

Post Image

Tax Deduction from Travel Allowance on Employee's Payment Summary

Travel allowance is a payment made to an employee to cover the costs of staying away from home for a night in the course of their duties If the first two exceptions are met, you have to give your employee a travel allowance over the reasonable travel allowance rate, but you have to deduct tax from the amount that exceeds it. The total amount of the travel allowance needs to be included in the allowance box on the payment summary. You have to include the amount of the travel allowance in the allowance box on your employee's payment summary if you want to avoid tax on it.

Read also our post on What Is Triphala Fruit.

Tax Deduction at Source and Transport Benefit for Employees with a Disability of Lower Limb

The only class of taxpayers that have a tax deduction at source is the salaried class. The majority of their tax is deducted from their salary income. In the case of other taxpayers, the tax deduction at source is at a fixed rate which may or may not cover their tax liability for the financial year.

Tax Season Approach of the SARS

The Commissioner for the SARS gave taxpayers a good idea of what to expect in the coming months. With a gloomy outlook on revenue collection, the taxman will look to extract every cent possible from the tax base. The tax season approach of the SARS will most likely increase their stance on verifications and audits.

It is important to maintain an accurate and detailed travel logbook and to adopt good tax filing and compliance strategies. The travel allowance will become a contentious item if employees are receiving a travel allowance for business travel and it is not possible under the restrictions. Employees will have to take extra care in preparing their logbooks.

Don't miss our story about What Is Trip Advisors Slogan.