Thanks. I was wondering if after allowing a deduction of 15000, which is also applicable to a normal employee, the balance, i.e. 13000 ( assuming I actually spend Rs 28000 for the year ) would be taxable. For a regular employee also only up to Rs 15000 is exempt from tax and any amount of reimbursement over and above Rs 15000 is taken as perks and added to his income for tax purpose. I was wondering if same rule would apply to me. Could you tell me why the reimbursement is not taxable?