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1) Dearness allowance
2) City compensation allowance (CCA)
3) Lunch / Tiffin allowance
4) Servant allowance
5) Fixed Medical allowance
6) Deputation and project allowance
7) Non-practicing allowance
8) Water and electricity allowance
9) Overtime allowance
10) Warden ship allowance
C ) Partly taxable \ partly Exempted Allowances
Specified Employee
3. Free education
Expenses on training the Fully exempted
employee
Education Allowance Already discussed
When original loan amount is upto Rs. 20000 – its fully exempted
If its above 20,000 -- its fully Taxable.
[ any amount of loan taken for medical purpose is fully exempted ]
Valuation
Calculate the interest on the basis of xxx
rate of int charged by SBI as on 1-4-
07
(-) any int charged by employer to xxx
employee
Taxable value xxx
Furnished Accommodation
Notes:-
1. Accommodation in remote area. ( 40 km away from town & population
less Than 20000) is fully exempted.
2. Temporary Accommodation (upto 800sq.ft.) given at mining site, etc –
fully exempted
3. Rent free Accom given to high court & supreme court Judges, union
ministers, officers of parliament leader of opposition - fully
exempted
4. On transfer employee can maintain 2 accom for 90 days, beyond 90
days both the accommodation will be taxed.
12 Issue of securities under employees stock option, sweat equity plan /
issue of bonus shares / right shares - fully exempted
14 Other Perquisites
Car & other conveyance , Free food and beverage, traveling &
touring, gifts & gift vouchers, credit card, club. -- not taxed in the
hands of employee for assessment year 2006-07 onwards if employer is
covered under fringe benefit tax.
C Gifts
D Club Facility
E Credit Card
F Motor Car
(i) Car Owned by Employee. Expn By Employer
Purpose Taxable value
Full Official Exempted
Fully Personal Full expenditure is taxable
Partly Actual Expenditure
(-) Expn claimed to be for official
purpose
(ii) Car Owned / Hired by Employer. Expn By Employer
16(ii) Entertainment Allowance:- Ist its included in salary income & thereafter a
deduction is allowed.
Deduction is allowed only to Govt. Employees (central and state).
Non government
Employees covered Amount of Gratuity xxx
under payment of received
Gratuity act of 1972
Less deductions
a) Gratuity actually xxx
received
b) Maximum limit 3,50,000
15/26 x last month Xxx xxx
salary x years of
completed service
WEL
Taxable gratuity xxx
Non-Govt.