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Tax on shift allowancess income

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This query is : Resolved

Quick Summary

Night shift allowance is taxable and must be included in salary for TDS. Income tax does not differentiate between day and night allowances, so TDS should be deducted on such payments.

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2013 Hi Sir,

I have small query to Calculate TDS On Employee Salary

We are doing consulting business as part on that our employee is working at our client place .The client has given Night Shift Allowances to the employee per working day 350 /-So that amount also can i culculate as employee salary income for TDS Deduction Purpose or no need to deduct TDS On this Amount Give me Your Advice .

Thanks ,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 February 2013 The income earned round the clock 7x24 is taxable. Income Tax does not differentiate between day shift allowances and night shift allowances. The amount is taxable.
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You have to consider the amount for TDS purpose.
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The decision about the head of income may be taken from the fact that, whether the amount is reaching him through your Professional Fee ( Consider the same under the head Salary)

or being directly paid to him without crediting your Fee A/c( IFOS).

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