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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...

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...

COMPUTING TDS ON SALARY

Report all eligible exemptions & deductions to your employer to ensure non-deduction of excess TDS from your salary!              Section 192 of the Income-tax Act prescribes for tax deduction at source out of payments representing any income chargeable to tax under the head ‘Salaries’. The provisions for tax deduction at source from Salaries during each Financial Year are explained by the Central Board of...

MERE DECLARATION CAN ENTITLE EXEMPTION!

SC holds that for TDS purposes Employer can grant exemption to Employee without supporting evidence Section 10 of the Income-tax Act grants tax exemption in the case of salaried employees, in respect of various allowances such as leave travel concession (LTC) under Section 10(5), conveyance allowance under Section 10(14) and the like, within the scope of prescribed conditions and monetary limits. Similarly, Section...

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