As already discussed, motor car/other vehicles, provided by the employer, is a perquisite only for specified employees because it is a facility provided by the employer to the employees. On the other hand, if the car belongs to the employee and the expenses of running and maintenance of that car are met by the employer, […]
Perquisites – Valuation of Motor Car / Other Vehicles [Rule 3(2)] Read More »
1. Provision by the employer of services of a Sweeper, a Gardener, a Watchman or Personal Attendant [Rule 3(3)] The value shall be the actual cost to the employer i.e. the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any
Valuation of Various Perquisites – for Calculating Salary Income Read More »
1. Perquisites [(Section 17(2)]- Income under the head Salaries Section 17(2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i) the value of rent-free accommodation provided to the assessee by his employer; (ii) the value of any concession in the matter of rent respecting any
Valuation of PERQUISITES- for Calculating Taxable Salary Income Read More »
1. Gratuity Gratuity is a payment made by the employer to an employee in appreciation of the past services rendered by the employee. Gratuity can either be received by: (a) the employee himself at the time of his retirement; or (b) the legal heir on the event of the death of the employee.
Valuation of Retirement Benefits – for Calculating Taxable Salary Income Read More »
So far, we have discussed what are the various incomes, allowances and perquisites which are exempt and which are to be included in gross salary. From the gross salary so computed, the following three deductions are allowed under section 16 provided the employee does not opt to be taxed under section 115BAC: (i) Standard
Section 16 – Deductions from Salaries Read More »
Provident Fund Scheme is a welfare scheme for the benefit of the employees. Under this scheme, certain sum is deducted by the employer from the employee’s salary as his contribution to the Provident Fund every month. The employer also contributes a certain percentage of the salary of the employee to the provident fund. These contributions
Tax Treatment of Provident Fund for Calculating Taxable Salary Income Read More »
Cases or situations of Tax Relief under section Section 89/Rule 21A when Salary is Paid in Arrears or in Advance for calculating taxable salary income for assessment year 2022-23 & 2023-24. Where, by reason of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his having received
[Section 89/Rule 21A]- Tax Relief when Salary is Paid in Arrears or in Advance Read More »
