Allowance Benefit

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This query is : Resolved

Sarvesh Mani Tiwari,CFA(ICFAI) (Querist)

01 March 2008 Is it essential to detailed mention in Gross salalry to claim the benefit of Transport Allowance,Education Allowance Medical Benefit Rs 15000,LTA(Ticket Cost)

R.V.RAO

R.V.RAO (Expert)

01 March 2008 LTA under clause 5 OF SEC 10 AND SEC 13A, HRA (SUBJECT TO LIMITS)UNDER CLAUSE 13A OF THE SAME SEC. FORM PATRT OF TAX FREE INCOMES.
CHILDREN EDUCATION ALLOWANCE UNDER SEC 10(14)EXEMPT UPTO RS. 100 PER MONTH PER CHILD (MAX.2 CHILDREN).
TRANSPORT ALLOWANCE UNDER SAME SEC EXEMPT UPTO RS. 800 PER MONTH.
MEDICAL REIMBURSEMENTS UPTO RS 15000 IN A YEAR UNDER SEC 17 IS ALLOWABLE AND NOT TREATED AS PERQUISITE.
ALL THE ABOVE EXEMPTIONS AND DEDUCTIONS CAN BE ALLOWED FROM GROSS SALARY, ON DECLARATION RECEIVED FROM AN EMPLOYEE BY THE EMPLOYER IRRESPECTIVE OF WHETHER THE GROSS SALARY IS SPLIT IN TO THESE DETAILS OR NOT.
THE LOGIC IS SIMPLE. THE IT ACT ALLOWS THESE EXEMPTIONS AND DEDUCTIONS .THEREFORE THE EMPLOYER CAN ALLOW.
IF THE EMPLOYER DOES NOT STATE THESE DETAILS IN OFFER LETTER AS GROSS SALARY,THAT IS NO VALID GROUND TO REFUSE EXEMPTIONS ALLOWED BY THE LAW OF THE LAND.
ASSESSING OFFICER ALSO CANNOT REJECT THESE DEDUCTIONS OR EXEMPTIONS WHICH ARE ALLOWED BY THE ACT.
R.V.RAO

Sarvesh Mani Tiwari,CFA(ICFAI)

Sarvesh Mani Tiwari,CFA(ICFAI) (Querist)

01 March 2008 Fine ,Thank You very much

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