05 January 2010
There was a recent news item in the TOI stating that perks (conveyance, medical allowance etc) will now be included in the employee's salary and taken into consideration in calculating the taxable income. It was mentioned that if this proposal is passed and made into a law, this amount that an employee claims presently will be taxed with retrospective effect from April 1, 2009.
This is one of the proposals mentioned under the Direct Tax Code which is proposed to be implemented from April 1, 2011.
My query is that when i calculate my taxable income for FY 2009-2010, should i consider this amount (Rs 41,400) as taxable? Or should i continue deducting this amount from my taxable income? The direct tax code is not yet implemented, so this clause is also not yet approved, is that right?
05 January 2010
Pl go through the perquisite valuation introduced consequent to the abolition of FBT which is available in the following notification.
INCOME-TAX (THIRTEENTH AMENDMENT) RULES, 2009 – SUBSTITUTION OF RULE 3 AND INSERTION OF RULE 40F
Notification No. 94/2009/ F.No.142/25/2009-S O (TPL), dated 18-12-2009 Don't mix up the issue with the Direct Tax Code which is only in the pipeline now.
05 January 2010
perks (conveyance, medical allowance etc) will now be included in the employee's salary and taken into consideration in calculating the taxable income as per the Notification mentioned above
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