Is Leave Salary or NSS Taxable in Hand of Legal Heir of Employee?

Leave Salary
Leave salary is part of salary as per section 17(1) of the I T Act. As such it is taxable in hand of employee during the employment  period. However, if the cash equivalent of leave salary is paid to legal heir on his /her death, the amount is not taxable in hand of [...]

Is Medical Reimbursement Taxable ?

Is Income received from Medical reimbursement of Govt. employee’s son suffering from blood cancer is added in total income? In my office One Staff Nurse having son suffering from blood cancer. Her annual income from salary 3,25,000/- for the year 2009-2010. Her Medical reimbursement bill is 7,35,000/- this amount is other than salary income in [...]

Is Children Education Allowance Taxed Twice?

Why children education allowance  is taxable ? The amount expended on Children Edu is paid from salary and taken into account for tax calculation, again when the same amount considered as income when it is reimbursed as CEA? Earlier RTF was also considered in the same way. F Saxena, Katni
Children Education allowance is not taxed [...]

Should Alimony Paid Out of Salary Be Deducted From Salary For Tax Purpose?

The aforesaid question was answered in negative by Bombay High Court in
Commissioner Of Income Tax. v. M. P. Poncha. 211 ITR 1005 .

The Facts of the case
The assessee was employed as general manager of Premier Auto Electric Ltd. and derived his salary from the said company. He also had income from dividends, interest, [...]

Is Salary Earning in France Taxable in India?

I am employee of a Private Engineering Collage. I am doing post doc research in France. My status is as follows: I am getting salary of from my employer in India for which TDS is deducted (I am on paid study leave). I am getting a salary of in France for which I will pay [...]

Easiest HRA Exemption Calculator

January , Feburary & March is taxing months. Everyone who earns taxable income certainly thinks about its at least once. Here is simple excel tool to help you compute the tax exemption out of House Rent Allowance.
Play with tool and please report error if any or any improvement.

Please report any error !

Is Shifting Charge & Temporary Accommodation Taxable Perquisite?

When I joined my present company in June 2009, I was paid a shifting charge of Rs. 30,000 and temporary accommodation (hotel) charge of Rs. 21,000. However the company has added those to expenses to my income and already deducted taxes. If I want to reduce these charges from my income (as these were expenses [...]

Can You Claim Exemption on Leave Salary Received in case of Resignation from Job ?

The receipt of leave salary is taxed as salary. However, section 10(10AA) provides for exemption computed as per Rule if the leave salary is received on superannuation or retirement or “otherwise”. Section 10(10AA) is as under
10(10AA)
(i) any payment received by an employee of the Central Government or a State Government as the cash equivalent [...]

Whether Incentive Bonus Earned By Development Officer Salary or Income From Other Source?

Incentive bonus is Salary and actualy expenditure incurred by Development officer and later reimbursed by LIC under Incentive Bonus Scheme 1997 and Reimbursement Scheme 1997 are not be regarded as taxable salary . This is the view of CBDT which was asked Kerala High Court in CIT,Kottayam vs Jhon Varghese in its interim order [...]

What Interest Rate Is Taken For Computing Perquisite on Concessional Interest Loans?

I am a bank employee and I have taken a personal loan from my bank. The rate of interest on the loan is 13%. Now bank has calculated perquisite for the loan. For calculating perquisite it is charging 15% interest. I want to know that could bank calculate perquisite on the loan when bank is [...]

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