Salary employee
This query is : Resolved
Mohit Agarwal
(Querist)
02 December 2012
If company gives petrol allowance and car maintenance allowance, I have my own car and keep a driver, how much I can get deduction from taxable income if I pay 10,000/- salary to driver and spend 15000/- on petrol/ maintenance?
what is the exception limit under current situation for a employee?
what is the exception limit under current situation for a employee?
03 December 2012
Deduction of expenses incurred is NOT available while computing Income from Salary.
03 December 2012
In continuation to Mr Bhardwaj......
However, you may get some benefit of tax liability depending upon the amount and pretext of payment by your employer, and some other conditions.
However, you may get some benefit of tax liability depending upon the amount and pretext of payment by your employer, and some other conditions.
Mohit Agarwal
(Querist)
06 December 2012
First of all thanks to both of you.
But my sir I am talking in respect of sec 10(14) allowances given to employee by employer. And as per my knowledge they are all tax free with the limit of actual expenses made or amount recevied which ever is lower. So according to that the whole amount is tax free because I am receiving allowance to perform my daily duty. I am right???
But my sir I am talking in respect of sec 10(14) allowances given to employee by employer. And as per my knowledge they are all tax free with the limit of actual expenses made or amount recevied which ever is lower. So according to that the whole amount is tax free because I am receiving allowance to perform my daily duty. I am right???
07 December 2012
If it is reimbursement of expenses then it is exempt. Reimbursement will be against proper bills.
If it is in the nature of allowance, then it shall be taxable.
If it is in the nature of allowance, then it shall be taxable.
07 December 2012
Mr Mohit
You should have mentioned in your question that you are receiving the amounts on the pretext of performing official duties.
Anyhow, please note that Govt cannot afford to give 100% deductions to two (yourself and your employer) for one expenses.
In case it is for performing official duties then your employer will get 100% deductions of these expenses and you will get no benefit.
If it is as Allowance then your employer will get deduction by 100% of the payments and you will also get benefit as per section 10(14).
contact@vkbajaj.co.in
You should have mentioned in your question that you are receiving the amounts on the pretext of performing official duties.
Anyhow, please note that Govt cannot afford to give 100% deductions to two (yourself and your employer) for one expenses.
In case it is for performing official duties then your employer will get 100% deductions of these expenses and you will get no benefit.
If it is as Allowance then your employer will get deduction by 100% of the payments and you will also get benefit as per section 10(14).
contact@vkbajaj.co.in
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