13 October 2009
If the employee resigns before 3 years and pays Rs. 3 lakhs to the company, how will this amount be treated in the hands of the employee and employer? Will the employee get any benefit of Rs. 3 lakhs paid to the employer
13 October 2009
MY OPINION IS THERE WILL BE NO BENIFIT IN THE HANDS OF EMPLOYEE.
IN CASE OF EMPLOYER IT IS A REVENUE RECEIPT AND TAXABLE(SINCE SALARIES ARE REVENUE EXPENDITURE THIS RS.3 LAKHS WILL BE CONSIDERED AS REVENUE RECEIPT).[SEC 28(iv)].
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