Download Income From Salary Comments. City compensatory allowance `300 p. 11,60, Perquisite value at 4% for the month Dearness allowance - 15, See Full PDF Download PDF. 10% p.a of the actual cost, if owned by employer, the amount of rent paid or payable by the employer if hired, [15/26] x Salary last drawn x completed years of service or part thereof in excess of 6 months, 1/2 x average salary x completed years of service (ignore fraction). From 01- 09 -2019 2,000 p. Transport allowance 15% of basic salary Contribution to recognised provident fund 500 p. Avg. SSRN Electronic Journal. NOTES 5 INCOME FROM SALARY [PART-II]. The NBA's financial landscape has undergone a significant transformation, with the salary cap steadily increasing over the years. emoluments from his employer: It is assumed that the Leave Travel Concession was availed for journey within India. car was put to use by the employer. This sum will be used to calculate your tax liability. Exempted up to 5,000 p. [14,900 5,000], Perquisite value of credit card expenses by employer (12,000+2,000) 14, - For serving Chairman/Member of UPSC, rent-free official house, transportation amenities including transport allowance, sumptuary allowance, and leave travel concession, Rent free unfurnished accommodation provided to Central and State Government employees. Rent paid 10% of salary [15,000 10% of (12,000+4,000)x 3] The house was taken on lease by XYZ Ltd. for 12,000 p. Ms. Jyoti occupied the house from 1st November ,2019. Hostel expense allowance (`380 x 12) Bonus 17,000 p. Her employer has provided her with an accommodation on 1st April ,2019 at a concessional rent. It is assumed that journey is performed by air Some of the popular non-monetary perquisites are rent-free housing, ESOP/Sweat equity shares, employer contribution to superannuation fund, loan for a 0% or lower interest rate, free food, and so on. Taxable on receipt basis if the same is not taxed earlier on due basis. (Laws of Torts LAW 01), Strategic Management Multiple Choice Questions, Problem Chap 1 - Summary Petroleum Engineering, IE 1 - Unit 3 - Jayan Jose Thomas - India's Labour Market, International economics krugman obtsfeld solutions, Krandall 7 - Mechanics of Solid H.Crandall Solution chapter 7, Meaning, Nature, AND Scope OF Political Science. (i) Gratuity 6,00,000. Income Tax Solved Practical Problems for Tax Year 2022 - 2023 by Dr. Zulfiqar Ahmad March 26, 2023 Sohail Afzal Accounting Book Problems of Chapter 3 Analysis of Business Transactions I.Com-I March 24, 2023 Medical insurance premium of 7,500 paid by the employer for insuring health of Ms. Rakhi is an exempt perquisite as per clause (iii) of the first proviso to section 17(2). For the purpose of above calculation, Salary includes all emoluments paid to an employee but excludes dearness allowance which is not included in the computation for retirement benefits, allowances which are exempt from tax, value of perquisites under section 17(2), employers contribution to PF and lumpsum payments received on retirement/termination. 40% of salary i. Note: Employees contribution to RPF is not taxable. The most common allowances are the Home Rent Allowance (HRA), medical allowance, travel allowance, leave allowance, and transportation allowance. However, Government employees who are in receipt of such an allowance are eligible for a deduction in respect of the entertainment allowance received by them to the extent of the least of the following: The actual expenditure incurred for the purposes of entertainment is not relevant to the calculation of the deduction. 60% of NPS corpus tax exempt on lump sum withdrawal on closure of account. The motor car was self-driven by employee. the year. The taxability of various allowances an employee could receive is summarized in the table below: is eligible for exemption in respect of LTA to the extent of expenses actually incurred for the purpose of such travel subject to the following limits: Exemption only in 2 out of a block of 4 years (current block: 1st January 2018 to 31st December 2021) with option to claim exemption for 1 journey (out of the 2) in the calendar year immediately following the end of the block. Dearness Allowance (100% of basic salary) 1,22, Less: Income from Salaries 2,69, (c) resignation; or (d) termination of services. Deduction under section 16 (ii) 2. The company gives him house rent allowance of 6,000 p. which was increased to 7,000 p. with effect from 01.01. employer would be excluded from perquisite subject to certain conditions CTC covers an employee's income as well as any other perks they receive, such as meal vouchers, office space rent, Provident Fund contributions, medical insurance, House Rent Allowances (HRA), and any other expenses incurred by the firm. (iii) As per the scheme of the company, he was offered a car which was purchased on 30.01 by the function MSFPpreload(img) from their clients. Perquisite value of lunch Nil. 2020- 21 Your employer's deductions for taxes and exemptions account for the difference between your take-home pay and CTC. Hostel expense allowance Allowance granted to Government Employees outside India, [Salary = Basic + Dearness Allowance (if provided by the terms of employment) + commission based on fixed % of turnover], Exemption shall not be allowed, if the employee resides in a house that is owned by him or if no actual expenditure is incurred by the employee on rent, Exempt from tax, to the extent it is expended to meet actual expenditure on purchase or maintenance of uniform, Academic, research and training allowance, Exempt from tax, to the extent it is actually expended by the employee for the purpose of academic, research and training pursuits in educational and research institutions, Exempt from tax, to the extent it is actually expended by the employee to meet cost of travel on tour or on transfer. b) In the above case (a), if among his 3 children the twin sons born on 02/02/2012 and the daughter was 1. Determine the income from From the following details, find out the salary chargeable to tax for the A.Y- 21 - If such expenditure is less than 2 lakh, it would be fully excluded. Municipal taxes paid by him is 40,000. Accommodation includes accommodation provided in, Hotel Accommodation includes accommodation in, * Only to employees holding office or post in connection with the affairs of the Union or State **As per 2001 census *** Not taxable if hotel accommodation is provided for not more than 15 days on transfer of employee from one place to another. (-) Municipal tax paid 40, f) Conveyance allowance of `1200 p. month. You will not be eligible to claim the TDS refund until and unless your employer is paying the TDS deducted to the credit of the Central Government. Medical expense reimbursed 25, Such tax paid by an employee is allowed as deduction from his Salary. Subject to conditions: not taxable if employee retires after 5 years of service or due to inability to work. The lending rate of State Bank of India as on 1.4 for housing loan may be taken as 10%. (10) Mr. X is provided with electricity. Employer also incurred 10,000 towards cost of seminar expenses of Mr. X and `10,000 towards education provided to Commission - 10, Tiffin allowance(actual expense 3700) 5,000 p. Fees, commission, perquisites or profits in lieu of or in addition to any salary or wages, Employer contributions to Provident Fund (PF) and interest in excess of the prescribed limits, Taxable portion of the balance transferred to a newly recognized provident fund, Employer's contributions to National Pension Scheme (NPS), Accommodation provided at concessional rates, Benefit or amenity granted free of cost or at concessional rates to specified employees, Sum payable by the employer (whether directly or through a fund) to effect an assurance on the life of the employee or to effect a contract for annuity except through a recognised PF, Approved Superannuation Fund and Deposit Linked Insurance Fund. is taxable perquisite. their accommodation till 30/9/2019 and from 1/10/2019 he started living in a rented house. Pay ranges for people with a Bachelor of Business Administration (BBA) degree by employer. Less: 12] Entertainment allowance being lower of . motor car, accommodation, etc., shall be exempt in the hands of employee. Email. License fees will be regarded as the taxable value of perquisites if they are assessed in accordance with the government's guidelines for house allocation. Amount actually received var a=new Image(); a.src=img; return a; Dont just save tax every year, make the investments count towards your financial goals. Step-By-Step Pay Equity Analysis Guide Product Guide By clicking Download Product Guide, Do you know what your employees really want for the holidays? - 7.5% of the income, if housing is provided in another city. Cost to the employer 10, (11) Profession tax paid by the Mr. X is 2, Answer Answer Gratuity received by Government & Local Authority Employees, Gratuity in case of employees covered by Payment of Gratuity Act, 1972, Gratuity in respect of any other employee, Non-Government Employee receiving gratuity, Non-Government Employee not receiving gratuity, From approved pension fund of LIC or other Insurer, Fully Taxable. The company had purchased this In this case, the gift voucher Taxable perquisite value = 1,500 12 = 18,000. Further, the employer is required to issue a certificate that such expenditure was incurred wholly and exclusively for official purpose. Commission 10, Entertainment allowance 4, Chapter 4- Exempted Income; Chapter 5- Salary Income Notes; R.Status Q-A 7 - Lecture Notes . The total travel cost was 80,000. the year ended 31- 03 - Repair and running expenses of Basic salary 20,000 p. Up to 31- 08 -2019 25,000 p. 85.9%. The beneficiary of the perquisite should be individually identifiable - Group benefits which are not identifiable to any particular employee are not taxable. This amount so transferred will neither be treated as income of the year of transfer nor will be eligible for any claim of contribution/deduction. As per clause (ii)(a) of the first proviso to section 17(2), reimbursement of medical expenses of5,000 on her sons treatment in a hospital maintained by the Government is an exempt perquisite. 2020-21. 4. How do you then decide on which life insurance plan works for you and how should you go about buying the one best suited for you. company to him for the entire financial year 2019-20: b) If the twin sons were born first i. on 02/02/2020, then, the exemption in respect of Rs. Use of vehicle provided by the employer for the journey of the employee from his residence to office or any other place or work or vice versa. Since bonus was paid in the month of October, the basic salary of ` 50,000 for the month of October is Mr. Y. Explore the various tax saving options to maximize your income while rushing towards your financial goals. retirement benefits) retirement: h) Telephone allowance received 500 per month. Bachelor of Business Administration (BBA) engineering physics (18phyl16/26) Criminal Law; Economics Hons (ECON 002) Administrative law (644) standard deduction u/s 16(ia) The servant was engaged by him and the salary is reimbursed by the company (employer). (c) Statutory amount children and the journey was undertaken by economy class airfare. It is a fixed component and excludes bonuses, incentives, overtime and allowances. Amount of exemption shall be lower of following: Leave Travel Concession or Assistance (LTC/LTA), extended by an employer to an employee for going anywhere in India along with his family*. In this case , since the twin sons were born after child i. one daughter, the restriction Copyright A perquisite is an additional benefit provided on top of the pay. Tags b.com free notes download Banglore university B.com Notes Banglore University BBA Notes bba free book download bba free notes download bms free notes download University of Mumbai BMS . Note An alternate view possible is that only the sum in excess of 5,000 is taxable. The value of any gift or voucher or token in lieu of gift received by the employee or by member of his household below 5,000 in aggregate during the previous year is exempt. Download Free PDF View PDF. He/she has incurred expenditure during the period between 12 October 2020 and 31 March, 2021 on goods or services liable to Goods and Service Tax at 12 percent or above and goods are purchased or services procured from GST registered vendors/service providers. The facts of the given case are similar to case of D.R wherein the Apex court has held that in such Sep 24, 2022, By Future Generali employee, outside India [ **1,05,000, in this case];** (ii) Expenditure on travel and stay abroad of the employee or any member of the family of such employee for medical treatment and one attendant who accompanies the patient in connection with such treatment **[** 1,20,000, in this case]. Basic pay 40, Dearness allowance 15, Taxable amount 1,50, The intereston the contribution overINR 500,000 wouldbe taxable as incomefrom other sources. 30,000 received 11,50, As per section 17(2)(iv), a perquisite includes any sum paid by the employer in respect of any obligation Entertainment Allowance [Section 16(ii)]. Less : Depreciation @ 20%. Hence, first let us understand the five income tax heads. Hostel expense allowance received = 380 x 12=4560. It is usually a large portion of your total salary. Balaji is eligible for availing exemption this year to the extent it is Avg. Less: Tax Deduction (Example- section 80C, section 80D, section 80G and so on), Suggested Read: How to Calculate Income Tax on Salary with Example. 11 salary components that can help you save on tax, Cancer, Heart & Critical illness Insurance, T & C of Appointment of Independent Directors, Claims settlement process MH, GJ cyclone Taukate and WB, OR cyclone Yaas, Order of Suspension or Cancellation of Appointment, Insurance awareness and consumer education policy, Income from Profits and Gains of Profession or Business. Marg, Vikhroli (W), Mumbai - 400083 | Fax: 022-40976600 | Email: care@futuregenerali.in | Call us at 1800 102 2355 | Website: life.futuregenerali.in, BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS. Medical expenses reimbursed 25, Professional tax paid 2,000 (1,000 was paid by his employer) Mr. Goyal contributes 5,000 towards recognized provident fund. Your PF is deducted at 12% of your basic salary. It is usually a large portion of your total salary. #1 Friends, here is an amazing PDF containing free study notes for the BBA final year subject - Income Tax. Amount exempt shall be lower of following: Average monthly salary for this purpose means average salary drawn in last 10 months immediately preceding the retirement. Download Free BBA Books Download HRM free books Download Human capital Management B.com Notes Human Resource Practices BBA Notes Income Tax Osmania University B.com Notes Indian Business Law Notes Industrial Law Notes Industrial law Notes free . 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Ltd. during the financial year, he gets following Children education allowance (500 x 12) **Less:** Exempt (100 x 2x 12), City compensatory allowance 3, IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. more than 1 litres) owned by the employer expenses fully met by the employer the Income under head Salary 4,65. if(MSFPhover) { MSFPnav8n=MSFPpreload("../_derived/next_cmp_Profile110_next.gif"); MSFPnav8h=MSFPpreload("../_derived/next_cmp_Profile110_next_a.gif"); } By Future Generali New Assured Wealth Plan (NON-POS Variant), Future Generali Money Back Super Plan (NON-POS Variant), Future Generali Heart and Health Insurance Plan, Future Generali Assured Advantage Solution, Future Generali Guaranteed Income Solution, Future Generali Money Back Super Plan (POS Variant), Future Generali New Assured Wealth Plan (POS Variant), Future Generali Big Income Multiplier (NON-POS Variant), Future Generali Big Income Multiplier (POS Variant), Future Generali Term with Return of Premium, Future Generali Group Superannuation Plan, Future Generali Group Leave Encashment Plan, Future Generali Group Term Life Insurance Plan, Future Generali Comprehensive Employee Benefits Plan, Future Generali Wealth Protect : PLATINUM. of government employees and 10% in case of all non-government employees. However, exemption cannot exceed the amount of expenses actually incurred for such travel. Office & Corporate Office address: Unit 801 and 802, 8th floor, Tower C, Embassy 247 Park, L.B.S. Entertainment Allowance [Section 16 (ii)] Entertainment allowance is a taxable allowance and forms a part of the taxable salary. Get a fresh perspective on how you can succeed in a post COVID world with Thought Leaders whose opinions matter. Cost to the employer 12, The Income Tax Act, 1961 is an act to levy, administer, collect, and recover income tax in India. Hence, entire Rs. X Ltd. provided the following perquisites to its employee Mr. Y for the P. 2019- 20 2. Aggregate of employers contributions to Superannuation Fund, Provident Fund and National Pension Scheme (NPS), in excess of INR 7,50,000 and the annual accretions on such taxable contributions (computed in the prescribed manner) is subject to tax in the hands of the employee. **R&M - Running and maintenance to Mr. Y for his personal and official use [(1,800 + 900) MSFPhover = Certain Indian States levy a tax on employment commonly known as Profession tax which is required to be recovered by the employer from the salary paid to the employee and deposited into the treasury. Shri Bala employed in ABC Co. Ltd. as Finance Manager gives you the list of perquisites provided by the c) Perquisite value of Rent-free Accommodation 63, Employers contribution and interest thereon is taxable as Profits in lieu of salary under the head Salaries. House Rent Allowance