expemption on perks

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This query is : Resolved

Priyanka Mahajan (Querist)

22 October 2010 whts the limit of LTA exemption.
Entertainment Allowance
Reimbursements are exempted at wht level
reimbursement for books & Periodicals, vehicle re imbursement,

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 October 2010 There is no limit for LTA exemption, on actual expenses will be claimed

Books & periodical if reimbursed against official purpose it is exempted

Vehicle need to be valued based on perquisite valuation rules

Entertainment allowance

(a) In the case of Government employee the least of

(i) Rs.5000 or,

(ii) 20% of salary (exclusive of any other allowance), is allowable as a deduction.

(b) In the case of non-Government employees least of the
following : -

(i) Entertainment allowance regularly received from his present employer from a date prior to 1.4.1955 or,

(ii) A sum equal to 1/5th of salary (exclusive of any other allowance, benefit or perquisite) or,

(iii) Rs.7,500, is allowed as a deduction.

Priyanka Mahajan

Priyanka Mahajan (Querist)

25 October 2010 thnx sir

About Entertainment allowance,is this 7500/- only for full year or per month?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 October 2010 Sorry,correction in my reply, non Govt employees entertainment allowance if fully taxable, no exemption

Sorry again

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