08 March 2013
sir i am a salaried employed. for my higher education company is providing education assistance of 75% of my tution fees which is non refundable IF I pass. But if i do not pass i have to refund. Is this education assistance taxable in my hand. my account department want to deduct tax on it. kindly clarify.
08 March 2013
as per my view this is for like training exp. I don't think they should deduct TDS on it. because if u failed you will refund (I hope you will pass). They can treat it as business exp.
08 March 2013
At the first instant, Income tax department has not specified any provision for any concession on education fee reimbursement given by an employer. Hence, your education assistance will be fully taxable.
In case a company provides any facility /assistance to develop skills which can help employees to increase contribution in their routine job, can be treated as non-taxable income in the hands of employees.
But this is an aggressive opinion and Company should have a standard policy in place which is applicable for all employees.
30 March 2013
Is their any income tax provision which allow this expense as training expense/business expense in the hand of compnay and thus become non taxable in the hands of employee.
CAclubindia
