Tax Planning in the case of loan taken for construction or renovation of self occupied house property As we know for a salaried person purchasing a house is huge investment and proper tax planning is necessary for take maximum possible [Read More]
Taxable Perquisite Value of Educational Facilities Rule 3(5) Perquisite:- It is a casual emolument or benefit attached to an office or position in addition to salary or wages. Here we are talking about free education facility provided few economic giant [Read More]
Reimbursement of Medical Expenses General Principle In the form of allowance Taxable In the form of reimbursement Generally Tax – Free The above conclusion is well explained in different situations of your life:- Medical Expenses Allowance An employee should avoid [Read More]
Medical Treatment in India of an Employee’s Family Member Under the provisions of Section 17(2), a good deal of the expenditure incurred by the employee on medical treatment, paid for by the employer, is not treated as a taxable perquisite. [Read More]
Benefits available to salaried employees in AY 2015-16 Amendment was in the tax slab. Although there is no change in the existing tax rate yet new Government had increased the minimum limit from Rs. 2,00,000 to Rs. 2,50,000. There were no changes in the tax slab [Read More]
PENSION – Legal Issues and Taxation Fundamentals facts about pension:- Pension is a “Defined Retirement Benefit” plan. This is taxed as salary in the hands of the employee. For employer, pension is just like other employee benefit plan and any [Read More]
Common Issues in Computing Salary What is consider in salary income? A salary is a form of periodic payment from an employer to an employee. It is specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit [Read More]
Entertainment Allowance Introduction to Entertainment Allowance: Employer pays monthly allowance to the employee to meet his expenses for entertainment for motivation. Such allowance is called as entertainment allowance. Statutory Provision Entertainment allowance is taxable. However deduction from taxable salary is [Read More]
Medical Allowance v. Medical Reimbursement In most of time name does make a difference. But our income tax act is an exception of this. Here nomenclature can make a big difference. Whether you are receiving Medical allowance or Medical reimbursement, [Read More]
House Rent Allowance (HRA) Vs. Rent Free Accommodations (RFA) House Rent Allowance (H.R.A.) results in tax savings because accounting under Income tax act is direct exemption based. However, accounting of Rent Free accommodation is valuation based taxation and added to total income of employee [Read More]