Dear Sir/Madam,
I was working in PSU(Govt.) and I had got officially Laptop (Purchased in Nov 2015) and Mobile(Aug 2015), amount was reimbursed by company fully i.e total of ~Rs.99000/-(both Laptop and mobile),
as per company policy (lifetime of for laptop is 3 year and mobile 2 years as per company policy )
I quit the Company in July 2016. I had to purchase the device as per policy at depreciation rate which was Rs.7000/- which I paid the company and kept the device.
Now in my income tax sheet FY 2016-17 provided by the company they have shown Other fringe benefits of Rs.92000/- (Rs.99000-70000) as taxable income.
I asked for clarification from the company regarding the same they didn't respond properly.
Presently I'm in 20% Income tax slab, please clarify do I need to pay income tax on Rs.920000/- i.e Rs18000/- as income tax.
My Query
actually, I didn't complete One year in terms of no. of days(<365 days), after purchasing device.
1. My question, is it my responsibility to pay tax on a device provided by the company which I used while in the company, and had to buy back compulsorily?
2. How is Depreciation calculated in terms of no. of days after purchasing or financial year to calculate one Year? I mean If buy in FY 2015-16 and Quit in FY 2016-17 is it considered one year for depreciation?
3. Do I need to pay tax as per my slab rate or is there a fixed rate for above case?
thanks
CAclubindia
