TDS on Reimbursement of Professional Fee

Dear Friends,

Please confirm whether the reimbursement of Annual Membership of a Professional Body e.g. ICAI, ICWA, ICSI to the employees and if yes than what would be the taxable part.

Waiting for reply.

Regards,

Rajesh Gupta

Replies (2)

Hi.. It will be treated as perquisites in the hands of the employee and taxed as per sec192

DEAR

 

FIRST \OF ALL, NO TDS ATTRACTED ON THE MEMBERSHIP FEE. THERE IS NO NEED TO DEDUCT THE TDS ON MEMBERSHIP FEE WHICH IS LIABLE TO BE PAID BY THE EMPLOYEE CONCERNED.

 

IT IS TAXABLE AS PERQUISITE IN THE HANDS OF EMPLOYEES UNDER SEC 17(4) OF THE INCOME TAX ACT. THUS, WHILE COMPUTING TDS ON SALARY ON THOSE EMPLOYEE FOR WHOM THE MEMBERSHIP FEE HAS BEEN PAID,  SUCH MEMBERSHIP FEE PAID SHOULD BE ADDED TO THEIR SALARY FOR CALCULATING TDS.

 

FURTHER, EMPLOYER PAYING SUCH MEMBERSHIP FEE WOULD GET THE DEDUCTION OF THE SUCH MEMBERSHIP FEE PAID.

 

 

REGARDS,

 

MANOJ

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