Exemption u/s 10 & 17

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yogesh (Querist)
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20 March 2014 Dear Sir
Company gives allowances like HRA,LTA,Transport,vehicle maint. to his employee.

Now question is what are the liability on companyside in income tax ?

if any libility comes on company let me know ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 March 2014 1. The company is required to deduct TDS u/s 192 on the salary paid to the employees.

2. HRA and LTA are exempt to a certain extent. the company has to obtain proof fro the same.

HRA - rent receipt or rent agreement. Further if the rent paid for the year exceeds Rs. 1 lakhs, then PAN of landlord is also required.

LTA - Tickets or proof of expense incurred on travelling.

yogesh

yogesh (Querist)
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21 March 2014 Dear sir
we give petrol allowance (for marketing )to sales person should it be count in total salary or it is deduct from salary while deducting TDS ?

Is it one kind of incentive ?