Expense Management | Policy Engine
Policy enforced at submission, not at approval.
Per-category, per-employee-level, per-trip-purpose limits enforced on the expense form. Over-limit needs justification plus a higher-tier approver. Section 10(14) per-diem rules built in. The AP team reviews compliant expenses; the policy stops the rest.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Per-category limits | Category + employee level + amount | Submission gate at limit |
| Per-trip-purpose rules | Trip type + allowed categories | Disallowed categories blocked at submission |
| Per-city limits | City + per-diem rate | Metro vs non-metro per-diem applied |
| Override workflow | Justification + approver chain | Routed to higher approver |
| Section 10(14) compute | Per-diem actual vs prescribed | Tax adjustment to payroll |
-
Per-category limits
- Input
- Category + employee level + amount
- Output
- Submission gate at limit
-
Per-trip-purpose rules
- Input
- Trip type + allowed categories
- Output
- Disallowed categories blocked at submission
-
Per-city limits
- Input
- City + per-diem rate
- Output
- Metro vs non-metro per-diem applied
-
Override workflow
- Input
- Justification + approver chain
- Output
- Routed to higher approver
-
Section 10(14) compute
- Input
- Per-diem actual vs prescribed
- Output
- Tax adjustment to payroll
Compliance + integrations
Policy and tax law, both enforced.
Section 10(14) of the Income Tax Act prescribes per-diem rates for tax-free reimbursement. The policy engine enforces both the company policy and the Section 10(14) rule in one pass. Excess auto-flagged for tax adjustment.
Regulations we work within
-
Section 10(14), Income Tax Act
Per-diem prescribed rate enforced; excess flagged for tax.
-
Rule 2BB, Income Tax Rules
Categories of allowance prescribed for Section 10(14) treatment.
-
Section 17(2), Income Tax Act
Perquisite valuation where company-funded benefits exceed limits.
Connects to
- Payroll module Tax adjustment posting
Policy Engine FAQ
What buyers ask.
Section 10(14) per-diem. What rate is prescribed?
Rule 2BB prescribes the rate for various allowances. For travel within India, the standard rate is ₹1,500 per day; international travel rates are city-specific. Above the prescribed rate, the excess is taxable in the employee's hands. The system carries the latest rates and adjusts when CBDT updates them.
Can we have different limits for different employee grades?
Yes. Per-category limits configured by employee level (Junior, Senior, Manager, Director, C-suite). The system applies the right limit based on the employee's level at the time of expense.
A genuine emergency over-limit. How is it handled?
The override workflow allows submission with justification and routes to a higher-tier approver. Emergency overrides are logged separately for the CFO's monthly review. Repeat overrides for the same employee or category trigger a policy review.
More in Expense Management
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Configure your top 5 limits. Run last quarter's expenses through.
Free trial, one entity. Configure your top 5 expense limits in 5 minutes. Run last quarter's submitted expenses through the engine. The over-limit and the tax-adjustment exposure surface in minutes.