Section 17(3) gives us an inclusive definition of “Profit in lieu of salary”. As the name suggests, these payments are received by the employee in lieu of or in addition to salary or wages. These payments includes the following: Terminal Compensation Here the termination may be due to Retirement, Premature termination, Resignation or otherwise....
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LTC/LTA: Treatment of Leave Travel Concession or Assistance
Among the types of perquisites you have learned, Leave Travel Concession or Assistance(LTC/LTA) carries great importance. It is the perquisite given to employee on his leave travels. It also includes employee’s family members. What is the tax provision of LTC/LTA The employee is entitled to exemption under section 10(5) in respect of the value...
Continue readingMedical perquisites to employees: What is its tax treatment?
Medical perquisites are considered as tax free perquisites as per Income Tax Act. However there are certain cases where medical facilities are treated as tax free perquisites. You must read till end! Medical facilities/reimbursement in India The value of any medical treatment provided to an employee or any member of his family in any...
Continue readingValuation of perquisites of the Motor car
Introduction Motor car provided by the employer is a perquisite only for specified employees because it is a facility provided by the employer to employees. On the other hand, if the car belongs to the employee and the expenses of running and maintenance of that car are met by the employer, it becomes a...
Continue readingIncome under the Head ‘Salaries’: An Overview
In Taxation, all income, for purposes of charge of Income tax and computation of tax are classified under various heads, which are Salary, House property, Profits and gains of Business and Profession, Capital gains and Other sources. In this post, we will learn about Income under the head Salaries. Learning about Salary is really...
Continue readingAllowances & Perquisites of Salary
Heads of Income is one of the most important, or I can say the most important part of Taxation. Out of it, the part which contains more parts of learning is in Salary head where there are many limits to memorize. But I always favor the chart style learning where we can learn many...
Continue readingInvesting in NSC(National Savings Certificate)
National Savings Certificate is one of the kind of Government organised investment scheme. It is generally meant for small savings. It is a part of the postal savings system. That means it can be purchased from any Post office in India. Also it is helpful in saving tax. Earlier there were two types of...
Continue readingAadhar Card- Where it is necessary?
On 26th of September 2018, The Supreme Court of India had cleared the path of dilemma among citizens of India regarding the world’s largest Biometric Programme, i.e., Aadhar. It had cleared on where Aadhar Number is required to be furnished. No doubt Aadhaar is the fruitful concept for gaining from Government’s latest plans. However...
Continue readingAll about investing in Public Provident Fund(PPF).
Public Provident Fund(PPF) is one of the kind of investment available for common people which not only saves money, but also your tax! So read it till end to learn it. An Individual can open account with ₹100/- but has to deposit minimum of ₹500/- in a financial year and maximum of ₹150000/-. Deposits...
Continue readingSome of the Post Office investment schemes all should know!
Just like various investment schemes available in banks, there are several similar schemes of post office, meant for investment. Along with investment, they are also the tax saving tool! So read about all these schemes till end: Post office Saving Account: These account can be opened by cash only. Minimum amount for opening of...
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