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?
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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