Business promotion allowance deduction under salary computat

If business promotion allowance is paid by employer to employee, is it deductible u/s 10?  if yes please give me details.

Replies (2)

IN THE BOOKS OF EMPLOYER- IT IS A EXP, WHETHER IT MAY SALARY OR BUSINESS EXP, IT IS ALLOWABLE.

IN THE BOOKS OF EMPLOYEE- IF THIS IS A ALLOWANCE , THEN IT IS ALWAYS CHARGEABLE TO TAX.

HOWEVER IT MUST BE SEEN THAT IF THE SCOPE OF WORK IS BEYOND THE NORMAL DUTY, I.E. IT IS EXTRA DUTY, THE RELATIONSHIP BETWEEN THEM SHOULD BE CHECKED. IF THEY ARE AS MASTER AND SERVENT THEN SALARY INCOME, IF PRINCIPAL AND AGENT THEN IT IS OTHER SOURCES OR BUSINESS INCOME.

BUT NOT EXEMPT FROM TAX.

Completly agree with Maheshkumar Sir

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