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EQUITY VERSUS TAXATION !

Though equity and taxation are often held as strangers, Courts have ensured that they do not always remain so!              Courts have been liberal in their judicial interpretations, while dealing with issues relating to exemption provisions, holding that “a beneficial section has to be construed liberally, having due regard to the object which it intends to serve.”             In a recent matter that came up...

TAX PLANNING FOR THE SALARIED!

You can enjoy a maximum take home pay by including these tax free allowances & perks in your annual pay package! The Income-tax Act provides for a number of allowances and perquisites which have been notified as tax free and every salaried taxpayer must endeavour to negotiate his pay package in a manner that the same can include such tax free allowances and perquisites. This would ensure that he is able to take...

HINDUISM NO RELIGION, ONLY A WAY OF LIFE!

ITAT holds expenses for worshipping Shiva & Hanuman or organizing Ganesh festival is not for any religious purposes!               “Expenses incurred for worshipping of Lord Shiva, Hanuman, and Goddess Durga and for celebration of festivals like Shivratri, Hanuman Jayanti, Ganesh Utsav and Makar Sankranti cannot be regarded to be for ‘religious purpose.’ Upholding this contention in a landmark decision, which...

TAX EXEMPT REIMBURSEMENTS!

Salaried employees should plan to enjoy conveyance, telephone, entertainment & medical reimbursements! Under Section 17(2) of the Income-tax Act read with Rule 3 of the Income-tax Rules, any reimbursement granted by an employer to his employee for telephone expenses (including a mobile phone), actually incurred by an employee is treated as an exempt perquisite (perk). It is pertinent to note that there is no...

TAX FREE SAYONARA!

Receive a bouquet of tax benefits when you say good bye to your employer on retirement or termination of service! Under the provisions of Section 10(10) of the Income-tax Act, gratuity received by an employee from his employer, on retirement, or becoming incapacitated before retirement, or expiring, or whose services are terminated, is exempt as under: GRATUITY EXEMPT UPTO RS.10LAKHS v  In case of Government...

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