FIXED ALLOW. IN SALARY STRUCTURE
This query is : Resolved
16 October 2009
Hi Freinds,
Will there be any income tax liability on the employee if FIXED amount of Uniform allow,Conveyance allowance(for official purpose),helper allowance,and medical reimbursements forms part of the salary structure.But the employees are providing supportings for all of them and getting reimbursed.
Regards
Prince
Will there be any income tax liability on the employee if FIXED amount of Uniform allow,Conveyance allowance(for official purpose),helper allowance,and medical reimbursements forms part of the salary structure.But the employees are providing supportings for all of them and getting reimbursed.
Regards
Prince
18 October 2009
All fixed allowances are taxable as components of salary in the hands of the employee.
All reimbursement of expenses are treated as perquisites and has to be calculated for each item.
All reimbursement of expenses are treated as perquisites and has to be calculated for each item.
18 October 2009
Thank You Sir.
But I wanted to understand then how can one take exemption of allowance u/s 10(14).Which provides for exemption to the extent the expenses ,like uniform,conveyance,helper ,are incurred for official purpose.
Do you mean that we need to take the exemption separately without it forming part of salary structure.
thanks
But I wanted to understand then how can one take exemption of allowance u/s 10(14).Which provides for exemption to the extent the expenses ,like uniform,conveyance,helper ,are incurred for official purpose.
Do you mean that we need to take the exemption separately without it forming part of salary structure.
thanks
18 October 2009
Under each head you have to calculate the disallowance.
EG: Uniform allowance : 17000
(-) Less Spent : 7000
-------
Taxable 10000
Conveyance : 1000
(-) Spent : 600
-------
Taxable 400
EG: Uniform allowance : 17000
(-) Less Spent : 7000
-------
Taxable 10000
Conveyance : 1000
(-) Spent : 600
-------
Taxable 400
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