17 August 2012
hi all my query is what will be the computation if Employer pays the Income tax of Employees. will the amount of Tax paid by employer be added in total salary as Perquisite ?
17 August 2012
Pls also read recent case law in this regard- HIGH COURT OF UTTARAKHAND AT NAINITAL Income Tax Appeal No. 10 of 2010 Director, Income Tax (International Taxation) Versus Sedco Forex International Drilling Inc & Others.
17 August 2012
Thank you sir .. i have read the same but bit confused about the computation . whether to take the tax amount in total income or not . And i am trying to search a sample computation regarding the same but not getting it . sir can you illustrate it with an example, so that the same would be clear
17 August 2012
Tax paid by the an employer on behalf of the employee ic considered as a perquisite and is chrgeable to tax.
w.e.f. assessmentbyear 2003-04, an employer has been given an option to pay tax on the whole and part of the perquisite(not provided by way of monetary payments) on behalf of an employee, clause 10(10CC) was inserted w.e.f. A.Y.2003-04to exept the amount of tax actually paid by an employer, at his option, as the income in the nature of an perquisite on behalf of an employee. Such tax paid by the employer shall not be treated as an allowable expenditure in the hands of employee.
The above exemption is not available on monetary payment
18 August 2012
Sunil Kr Sir .. what actually my case is .. ABC company from outside India sending some expats to work in india. Now they are liable for income tax on salary drawn from the company for the service rendered in India . as income tax was exempt on Expats' home country, Company is paying their Income tax in India . NOw my query is whether in calculation of tax for expats to include the amount of tax paid by the company or not? how to deal with this particular case?
CAclubindia
