Tax benefit for working in a hilly area, tribal area, border area, and disturbed areas
Section 10(14) of amended finance act 2020 provides tax benefits on allowances paid to salaried people working in hilly areas, tribal areas, duty on the island, duty in the border area or remote area, or any difficult/disturbed areas. Provisions of section 10(14)(ii)provide exemption towards the prescribed allowance granted to an employee to meet his personal…
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Review/renewal of credit facilities should be brought under the scope of concurrent/internal audit/internal control mechanism: RBI
On Risk Management System in Banks, Scheduled Commercial Banks (SCBs) and Urban Co-operative Banks (UCBs) are required to put in place a board-approved credit policy, which, among other things, should prescribe the periodicity and methodology of review/renewal of credit facilities. As per RBI guidelines, regular and ad-hoc credit limits need to be reviewed/regularised not later…
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List of employee benefits not included under the head of Salaries for the tax treatment
Perquisite may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. In the following cases the value of benefits are not treated as perquisites for the purpose of income tax assessment of an employee. Hence, they will not be included under the ‘head of…
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How to calculate tax components on the perquisite value of rent-free unfurnished/furnished accommodation/hotel charge
This article will cover the calculation of taxable perquisite value with regards to quarters provided to employees and hotel charges reimbursed by the employer. Applicable Taxes calculated as per amendments to finance act 2020. A perquisite is a benefit offered to employees by the employer on account of their job or position. The benefits can…
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What is the exemption limit for Transport allowance, Conveyance allowance, etc.?
Updated : as per amended finance act 2020 Conveyance allowance is an allowance offered to taxpayers who receive income from salary to meet the cost of transportation in the course of official work. Usually, it is provided to employees only if there is no transportation provided by the employer. Conveyance allowance: It is provided to…
RBI releases ‘National Strategy for Financial Education 2020-2025’ (NSFE)
The Reserve Bank of India (RBI) today (on Thursday) came out with a ‘5-Core Actions’ approach for promoting financial education, which among other things include development of relevant content for school children and adults, community participation and collaboration among various stakeholders. According to NSFE, the country has been one of the important developmental agendas of…
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