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Hi pl te whether professional tax paid by employer is included in definition of Salary for computing Rent free accommodation
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.
CA Suraj Lakhotia Admin
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.
Also any type of commission.. irrespective of percentage of turnover or not..rite?
Thread Starter
Ganesh kumarSo ..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