About tax planning

sivaram (Asst Mgr-Taxation) (6918 Points)

27 February 2014  

Dear All

The Company gives the following by means of  Allowances in different heads for better tax planning  and some of the heads are detailed below kindly advise as to what to do

Kindly note that these are given as allowances in payslip not as perks but if any allowances can be treated as perks if it is fully exempt then let me know as to what to do to do a better tax planning for employees

1.Uniform Allowance : if i get a bill from the employee  for the entire allowance given to him as salary for the financial year  can i grant exemption for the same?

2.Telephoene reimbursement: if employee gives mobile bill or land line bills for the enitre financial year can i exempt  the entire allownace given under this head?

3.Servant Allowance : what is the procedure if an employee gives a bill for the same?

4.Books : for which bill is given by employee?

5computer allowance: they want to treat it as academic allowance and get it exempted on production of some repair or purchase bill can it be done?

6.Coveyance : here employee owns the car and employee meets all expenses only the salary is given by the emplyer in the form of coneyance allowance cubic capacity of car <1.6 

please give good advise as to what to do  and the employer has not paid any perquisite tax for any of them 

give a good tax planning procedure as to how to go about it 


Thanks in advance