Salaries
This query is : Resolved
17 February 2016
If employer sponcers membership in a club to one of his employee (approx membership fee is of rs.5 lakhs) then
1. can the employer claim full amount of 5 lakhs as an expenditure or is there any restriction ?
2. How it will be treated in the hands of employee.
1. can the employer claim full amount of 5 lakhs as an expenditure or is there any restriction ?
2. How it will be treated in the hands of employee.
17 February 2016
1 Employer can't claim the full amount as expenditure as it is not a business expenditure.
2 It will be treated as perquisite and taxed in the hands of employee.
2 It will be treated as perquisite and taxed in the hands of employee.
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17 February 2016
Sir,
whether the employer can claim full amount as an expenditure or is there any restriction
whether the employer can claim full amount as an expenditure or is there any restriction
17 February 2016
See the modified reply.
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17 February 2016
Sir Please
can you tell me the limite or percentage of amount that the employer can claim as an expenditure
can you tell me the limite or percentage of amount that the employer can claim as an expenditure
17 February 2016
If the employer can prove that the payment is a 'business expenditure', then deduction will be allowed u/s 37.
Inference - New India Extrusions (P) Limited Vs. ACIT (10 ) Taxmann.com 165.
Inference - New India Extrusions (P) Limited Vs. ACIT (10 ) Taxmann.com 165.
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17 February 2016
No limit or percentage is there. If you prove that it is a business expenditure or the terms of employment provides such payment to retain the employee then it will be allowed.
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