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RFA definition of Salary

Hi pl te whether professional tax paid by employer is included in definition of Salary for computing Rent free accommodation


Ganesh kumar

Ganesh kumar

CA Inter

130

17-Nov-20

39

Answers (4)

Salary includes all emoluments paid to an employee but excludes dearness allowance which is not included in the computation for retirement benefits, allowance which are exempt from tax, value of perquisites under section 17(2), employerâ??s contribution to PF and lump sum payments received on retirement. PRofessional tax is the obligation of employee paid by employer and hence a perquisite and excluded.


Suraj Lakhotia

Suraj Lakhotia

Admin

17-Nov-20

Thread Starter

Ganesh kumar

So ..is this wrong? Pl clarify

Amount actually paid during the year. However, if professional tax is paid by the employer on behalf of its employee than it is first included in the salary of the employee as a perquisite and then same amount is allowed as deduction. Refer link https://www.incometaxindia.gov.in/Charts%20%20Tables/Treatment_of_income_from_different_sources.htm


Suraj Lakhotia

Suraj Lakhotia

Admin

18-Nov-20

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