Tds on salary

I WANT TO DO TDS DEDUCT FROM SALARY OF AN EMPLOYEES .THEY EMPLOYEES GIVE ME DETAILS OF THEIR INVESTMENT.IT IS COVERED U/S 80 C . BUT PROBLEM IS THEY TOLD ME THEIR TRAVELING EXPENSES ( RS.800 P.M. ) ALSO DEDUCT FROM ANNUAL SALARY. ACTUALLY COMPANY IS NOT GIVE FIXED TRAVELING ALLOWANCE P.M. . COMPANY GIVES TO TRAVELING EXPENSES WHEN THEY GO FOR OFFICE RELATED WORK ( THEY GIVE ME TRAVELLING BILL) .indecision SO CAN I DEDUCT TRAVELING AMOUNT (9600 P.A.) ?

 

THANKS IN ADVANCE

 

 

 

Replies (6)

Yes, ofcourse. Deduction of Rs. 9600 can be made on account of "Transport Allowance"  as per Sec 10(14) read with Rule 2BB. 

What you are talking is reimbursement of "Conveyance Allowance" and that too is fully exempt.

Suppose, you are paying Rs. 10,000 salary to your employee , then you just need to bifurcate this 10,000 into Basic Salary of Rs. 9,200 and Transport Allowance of Rs. 800.

Hi Sonam ,
Thanks for quick reply.smiley
Sometime our company when pay to employee for travelling expenses they can not trated as travelling expenses because they not huge amount . Suppose employee goes for legal matter their travelling expenses is treated as Legal expenses. In this case what I do travelling amonut Rs.9600 deduct from particular employee salary??

 

I think, you need to understand the meaning of different terms used in computation of income under the head salary:

Conveyance Allowance - Given to employee for travelling within the city for the office purpose.

                                    It is fully exempt on the basis  of actual expense incurred.

Travelling Allowance - It is given to employee for travelling outside the city for the office purpose.

                                      It is fully exempt on the basis  of actual expense incurred.                                      

Transport Allowance- It is given to employee for meeting his daily up-down jurney from office to home and vice-versa.

                                   Rs. 800 p.m is fixed irrespective of the actual expenditure incurred by the employee.

Plz do ask, in case you still have any doubt.

 

 

Travelling/conveyance/transport expenses actually incurred for the purpose of carrying out the work/activities related to the company is exempt in the hands of the employee - exempt meaning not part of his/her income.

okkkkkyes

Ab bat samajme aayi

My quiz is related to transport allowance .......BUT WE ARE NOT PAID RS.800 P.M. TO EMPLOYEE SO NOW ALSO DEDUCT AMOUNT FROM THEIR SALRY FOR (RS.9600 P.A.)????

 

It is a form of tax planning. Atleast by showing Rs. 800 as Transport Allowance, you can save Rs. 960 of your employee.

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