Taxable / Non Taxable salary Income

Tax planning 3277 views 2 replies

Hi Friends,

For computation of employees Income tax on salaries.  What is taxable components and what is non-taxable components on the following components.

1. Books & Periodicals

2. Attire Allowance

3. Driver re-imbursement and Vehicle maintenance

4. Assisstant Allowance

5. Conference fee re-imbursement

6. Gratuity

7. Exgratia

 

Thanks & Regards

Friend

 

 

 

Replies (2)

3. Driver re-imbursement and Vehicle maintenance read as Vehicle Maintanence and Driver salary

1. Books & Periodicals - Non Taxable if the Books & periodicals used for purchase of official & business related books.

2. Attire Allowance : It is somewhat simmilar to Uniform allowance, which is non taxable, the limit is not mentioned any where but it is better to restrict to maximum 7.5% of the Total CTC.

3. Driver re-imbursement and Vehicle maintenance - Refer Perquisite rules for this. However some companies considered this as an reimbusement on submission of actual proof, and consider this as Non Taxable.

4. Assisstant Allowance - Non Taxable if directly paid to Assistant by the Company.

5. Conference fee re-imbursement - Non Taxable.

6. Gratuity - Taxable Refer Section 10

7. Exgratia - Taxable


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