Dear Colleagues/ students,
In tax planning for salary from companies' point of view, what all points should be considered to balance the tax liability between employer and employee?
For example, Medical reimbursement upto Rs. 15000 is an exempt perquisite in the hands of employees. Does this mean it will be taxable for employer under section 40 (a)(v)?
Similarly for travelling/conveyance allowance of Rs.800 per month, Education allowance of Rs. 100/month/child.
Thanks and Regards,
Prutha Shah
In tax planning for salary from companies' point of view, Main point , we should considered to balance
the tax liability between employer and employee is that any allowance/perquisite which are given by
company is allowanble under the Income Tax.
Suppose Company paid Medical reimbursement to his employee, We have to see that such medical reimburshment is allowable as expenditure in the hand of company.
To effect of these provision company can reduce it profit .
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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