Anjalikoparday (student) (27 Points)
24 June 2012Please tell me the difference between deductions and exemptions and if company is providing transport charges to an employee who is shifting from A ltd to B ltd. as transport charges are provided by employer i.e benefit to employee. Under which head that benefit should be charged?
Please help me out for this query..Thanks
divyakrishnan
(Chartered Accountant)
(92 Points)
Replied 25 June 2012
if d company Altd provides transport charges , it will be charged under 'other income 'as the relationship between Altd and d employee ceases ...
silpa
(homemaker nd student)
(38 Points)
Replied 25 June 2012
If the income is exempt from tax it is not included in the computation of income.It can never exceed the amount of income.Deduction is generally given from income chargeable to tax.It can be less then or equal to or more then the amount of income.
silpa
(homemaker nd student)
(38 Points)
Replied 25 June 2012
Transport charges received by the employee is charged under the head income from other sources
Member
(Management)
(325 Points)
Replied 26 June 2012
Difference between deduction and exemption - as explained above. Added info: Examptions are found in Chapter-III of the IT Act and deductions in Chapter VI. Regarding transport charges paid, is it a part of the contract between the employer and employee? In that case, it may be treated as salary, otherwise as OS.
CAclubindia
