Income tax paid by employer on behalf of employee
This query is : Resolved
24 April 2013
(i) If income tax liability on salary of an employee is borne by the company, how it should be disclosed in form 16 as well as quarterly eTDS return?
(ii) Whether tax liability borne by the company amounts to monetary perquisite or non monetary perquisite?
(iii) Whether employee's tax liability borne by company can be booked as expenditure in the books of accounts of the company?
I shall be grateful if the above questions answered with appropriate example / illustrations.
(ii) Whether tax liability borne by the company amounts to monetary perquisite or non monetary perquisite?
(iii) Whether employee's tax liability borne by company can be booked as expenditure in the books of accounts of the company?
I shall be grateful if the above questions answered with appropriate example / illustrations.
24 April 2013
IT should be grossed up with the income and accordingly be shown in the E-TDS Returns.
.
It is a monetary item.
.
Income-tax payment can not be booked as an expense. It can be shown under the expense head like Salary & Wages and can be claimed as an expense.
.
.
It is a monetary item.
.
Income-tax payment can not be booked as an expense. It can be shown under the expense head like Salary & Wages and can be claimed as an expense.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
