If on Tax free Salary Employee has to bear the burden of Salary and the tax paid on such salary by the employer, the how such salary can be tagged as Tax free salary?
But on what kind of salary employees pays tax on his salary as well on the tax paid by employer on his salary. It's clearly written in the ICAI study material. If employee is just the medium of paying tax then why Study material says that employee shall be liable to pay tax on tax free salary.
If a salary person resigned during the FY/PY and then join another company then both companies take standard deduction of 50000/- , basic exemption may considered by both companies,
Tax Slab: If a person receive 450000 from employer 1 & 400000 from employer to for AY-2020-21 then many cases they don't deduct tax if they don't consider the income from previous employment.So balance tax may be paid by employee..
See this :
Salary + FD Interest
If salary above 10lacs then tax rate 30%+ cess Bank deducts tax of 10% only interest, balance has to be paid by employee while filing ITR as a self assessment tax or during the FY as an advance tax
The tax paid by the employer will be perquisite for you and will be taxable as well. so there will be tax for you on the tax paid by your employer. further these type of expenses will be disallowed in business of your employer.
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