19 March 2014
Good morning to all experts, Please clear my doubt about salary calculation. My salary detail for some month are given below. MONTH SALARY CANTEEN MOBILE TOTAL SALARY APRIL 24170 100 300 23770 MAY 24170 150 200 23820 JUNE 24170 350 300 23520 TOTAL 72510 600 800 71110
Then Sir my query is only that in which amount I will calculate tax.72510 OR 71110. Please sir reply soon
but sir mobile in official purpuse are fully taxable and canteen expenses are exempted 50 rupees per meal. so what salary will taxable thanks
19 March 2014
Hai rajiv how are you? First let be know your gross salary is Rs.72510 from this you deducting Rs.600 as canteen allowances and Rs.800 as mobile charges from the employee in their gross salary(means expenses recovering from salary)
Or you paying salary of Rs.71110 to the employee and paying Rs.600 for canteen expenses and Rs.800 for mobile expenses on behalf of employee for met by the employee, Please give clarification. Before to clarify your doubt/query.
19 March 2014
sir i want to know only that mobile expenses and canteen expenses are use in official time . so sir canteen is exempted upto 50 rupees per meal and mobile phone using in office time should be exempted from income
19 March 2014
However i simple words i can say, If such mobile expenses paying by the company directly then it is exempted not included in salary for the purpose of computation of TDS liability and like for canteen allowances if such allowances are paying to the employee then first has to add to the salary and then deduct Rs.50 per month as exemption income.
If you required i shall provide you in details calculation and example for situation wise.
19 March 2014
sir i am explaning my monthly salary is 24170 per month my salary for the month of april actual salary = 24170 less canteen 100 mobile 300 total salary in hand 23770
19 March 2014
Okay i simple said, If the mobile expenses directly met by the company means not paying to the employee then it is exempted otherwise it is taxable.
As well as if canteen expenses paying to the employee then upto Rs.50 only exempted otherwise full amount taxable.
19 March 2014
Now the information is clear, for the information provided by you, you recovering canteen expenses and mobile expenses from the employee from their salary, so if the break up for salary having Canteen allowances and mobile allowances separately, then canteen allowances shall be exempted and mobile allowances are taxable.
So in you actual salary of Rs.24170 brakup contains as below
19 March 2014
company gives us mobile limit is 300, then if the mobile bill cross the limit of amt,300. then it will deduct on salary. supoose mobile bill for the month of feb"14 is 350 then company provid limit of mobile is 300 then 50 rupees will deduct in our salary
19 March 2014
Okay, Means Company paying Rs.300 per month fixed allowance, so Upto Rs.300 per month is taxable and it shall be considered while computation of TDS,
Means if your mobile bill is Rs.350 from this company baring Rs.300 and fifty recovered from your salary then only Rs.300 shall be taxable. Example
Company for the month April'13 you salary details is as follows
Basic salary Rs.24000 mobile allowances Rs. 300 Total Rs.24300 From this you deducted Rs.350 as mobile allowances then net is Rs.23,950
But taxable salary for TDS purpose is Rs.24300, because of Rs.50 is expenditure to the employee and from salary employee and from salary income no expenditures allowed so Rs.24300 shall consider.
In one word for your query i can say mobile expenses shall be taxable and considered for tax purpose.
CAclubindia
