13 January 2016
For the employee, the company pays club member fee. If it is not for the purpose of business or is paid purely on behalf of the employee then the same can be treated as income of the employee under the head Income from Salaries. The company may debit the same to his salary account in stead of debiting it to Membership like a/c. . If the company can prove that the membership has been paid under a strict business consideration and it is meant exclusively for the purpose of business it can debit it to Membership like account. In such a case , name on the receipt does not have much impact as the same can be so, according to the rules and regulations of the club also. If its a like case, there will be no impact of taxation on the employee. .
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