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EDUCATION EXPENSES TAXABLE

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sona1

MANAGER

281 Points Posted on 28 January 2022

ABC Pvt. Ltd. shown his son (Mr. Amal) as an employee of the said company last one Year and till now (SALARY shown per month Rs. 25000.00) and according this company paid salary per month to Amal from company bank A/c , Recently konth of dec,21 ABC Pvt. Ltd paid by NEFT his son (Mr. Amal) Rs. 85000.00 for higher education purpose .

My question is what are the tax implications for both employer(ABC Pvt. Ltd. ) and employee(Mr. Amal) , and how to shown in tally this AND TDS deducted against this ?

Replies (6)

Quick Summary

This discussion explores the tax implications for both an employer (ABC Pvt. Ltd.) and an employee (Mr. Amal) when the company pays for the employee's higher education. The company has been showing the son as an employee and paying a salary, but he is actually still studying and not working. The query seeks clarification on how to account for the Rs. 85,000 paid for non-refundable higher education, including TDS deductions and Tally entries, and whether this payment is considered a repayable loan.

prasad Nilugal

GST Practitioner & Accounts

8984 Points Posted on 28 January 2022

Is this 85000/- given for Higher education is Loan and repayable by Amal ?

sona1

MANAGER

281 Points Posted on 28 January 2022

Higher studies (For Techniocal) purpose 85000.00 rupees given to Amal for non refundable condition.

prasad Nilugal

GST Practitioner & Accounts

8984 Points Posted on 29 January 2022

In query you have mentioned Son shown as a employee , so is he really employee and working in company ? or you have just shown him as a employee on attendance register and not working .