[Nearly, 104 amendments are made either by amending/omitting existing sections or by insertion of new sections. In this article, the amendments, which are most relevant to salaried persons, are covered.] Your total salary income comprises both monetary income and non-monetary income. Monetary income means income chargeable under the salary but excluding perquisite value of all…
[This post elucidates about components of salary, the monetary benefits paid by employers which do not include in salary, points to be considered for taxation of salary, place of accrual of salary, etc.] Salary is the remuneration which includes the pay, allowances, bonus, or commission payable monthly or otherwise or any monetary payment, by whatever…
Updated: As per amended Finance Act 2020 For Medical facilities in India: Under section 17(2) of income tax, the medical expenses incurred or reimbursed by the employer for medical treatment to an employee or his dependent relative (i.e. children, spouse, brothers, sister and parents) will not be chargeable to tax in the hands of the…
Updated: As per amended Finance Act 2020 Leave Travel Concession or Assistance (LTC/LTA), extended by an employer to an employee for going anywhere in India along with his family exempt is exempt from tax if you have opted for old-tax regime. In the other words, the tax exemption of leave travel allowance is not available…
Updated: as per amended finance act 2020 [Section 10 of the Income Tax Act allows the computation of specific incomes as tax-free. Here we have listed tax-free income mainly under Section 10(6) and other import incomes which are tax-free under section 10 such as 10(1), 10(2), 10 (2A),10(4),10(4B), 10(10D,10(10BC),and10(15).] There are certain types of income…
[This post elucidates details of tax components as well as tax exemption for earned Leave encashment, Gratuity, commutation of pension, NPS withdrawal, retrenchment compensation, , amount received on voluntary retirement, tax on EPF withdrawal etc.] Updated: As per amended finance act 2020 Leave encashment under section 10(10AA): The encashment of unutilized earned leave (read note-1)…
Updated: as per amended finance act 2020 If an individual receives any portion of his salary in arrears or in advance or arrears of family pension or receives profits in lieu of salary, then such amount is taxable in the financial year in which it is received. However, the assessee can claim relief for arrears…
Updated: As per amended finance act 2020 Sweat Equity Shares are Shares or Specified Securities issued at discount or for consideration other than cash to employees or directors of the company as reward their hard work or for their value addition in the progress of the company. ESOP (employee stock ownership plan) scheme comes with…
Updated: As per the amended finance act 2020 Interest-free loan or loan at a concessional rate of interest given by an employer to the employee (or any member of his household) is a perquisite chargeable to tax in the hands of the concerned employee under section 17(2)(viii) read with Rule 3(7)(i) of Income Tax act.…
Updated: (As per amended Finance Act, 2020). Motor Car perquisite is taxable only in case of specified employees (as defined below in note-2). Tax on perquisite value calculated on the basis of whether the motor car is used for official purpose or partly official partly personal purpose or purely for private purpose. The value of…