Esic on salary

This query is : Resolved

Share Report Follow Query Ask a Query

priya

priya (Querist)
Follow

15 April 2013 Whether Contribution to ESIC by Employee is eligible for deduction from salary while calculating tax?

Anand

Anand (Expert)
Follow

16 April 2013 Section 16 deals with deduction from Salaries. the following deductions are allowable
a) entertainment allowance granted to govt employee upto 1/5th of basic or rs. 5000/- whichever is less
b) Profession tax being a tax on employment.
ESIC is not covered under either of these heads and hence it will not be allowed as a deduction from salary

priya

priya (Querist)
Follow

16 April 2013 Then While calculating TDS we do not consider it for calculation Purpose?

Anand

Anand (Expert)
Follow

16 April 2013 Yes, your understanding is correct

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

31 May 2013 The provisions does not include this ESIC but it can be claimed u/s 80 by adding it with LIC as it is based on insurance

The provisons u/s 16 as on to day stands as under;
Deductions from salaries.
9416. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—
(i) 95[***]
96[(ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;]
97[(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 27698 of the Constitution, leviable by or under any law.]

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now