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training allowance

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(Querist)
26 February 2008 An Indian Airlines employee was granted aloan by the company to meet the expenditure of training as a trainee pilot.The company now recovers a monthly installment from the employee.
The recovered amount is included in his salary though in actuality it is deducted by the company from his net pay.He is currently paying tax on this sum as well
Is this sum exempt from tax under the income tax act?
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CA Saurabh Maheshwari

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CA Saurabh Maheshwari (Expert)
26 February 2008 SINCE THE LOAN WAS GRANTED TO EMPLOYEE FOR TRAINING IT CANNOT FORM PART OF INCOME OF EMPLOYEE. AND IF REPAYMENT THROUGH INSTALMENT MADE BY THE EMPLOYEE INCLUDES INTEREST THAN THAT INTEREST WILL FORM PART OF INCOME OF INDIAN AIRLINES
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
26 February 2008 What exactly you mean by "recovered amount is included in his salary"? Is the Airline reimbursing him the amount recovered?

What is the nature of the training expenditure?
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CA. GOPAL SONIKA

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CA. GOPAL SONIKA (Expert)
27 February 2008 Ms Vandana, can u pl expain as to why the recovered amount will be included in salary.
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Badri Kharat

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Badri Kharat (Expert)
28 February 2008 hi vandana, u go through section 80E, if loan was advanced to employee
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