Income tax problem????????-very urgent

'B' has joined co.xyz in april.2007.  Xyz Co. has put a condition on 'B' that co.will incur training cost on 'B' amounting Rs.300,000/- subject to condition that he will serve the co. for atleast  2 year.If he will quit co.before 2 years he has to returned the training cost amounting Rs.300,000/- to Co.   'B'  accepts the condition. During the Year F.Y 2007-08 'B'  has earned a salary of Rs.700,000/-.On may 2008 'B' quit the Co.Xyz after paying Rs.300,000/- to co. for violation of contract.

           whether 'B' can claim deduction of RS.300,000/- from income under the head salary. if yes,then how &  in which year????

Replies (3)

No , B cannot claim any deduction under d head salary ,as per sec 16 only entertainment allowance and professional tax  are d max items dat can be deducted under the head salary.

Originally posted by : TusharSSampatM.Com CA,CS-FINAL

No , B cannot claim any deduction under d head salary ,as per sec 16 only entertainment allowance and professional tax  are d max items dat can be deducted under the head salary.

agreed

 

Only one way to claim, Mr. B has to show his income as Rs.4,00,000/- (7,00,000 - 3,00,000) but the amount 3,00,000 has to paid by him in the same finance year.

Samuel M

M.Com, MBA

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