allowances

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010 Please help me in the following matters.....
1) conveyance is exempted upto Rs 800/ month, in case an employer gives 800as conveyance to employees and in a particular month that employee work for 20 days so conveyance is allowed in respect of days (800*20/30) or full....
i am confuse that allowances are allowed in full irrespective of no of working days or allowed on based of working days...
please help me...

2) my 2nd query is that suppose an employee is working in an educational institution, besides his salary he is taken classes for MBA & for that he is getting remuneration for classes taken , so that income is included in his salary income and tax charged as salary income or treated as professional services and tds charged u/s 194J,(that employee are not exclusive for taken classes they are taken classes as guest faculty, mainly they are non teaching staffs)

please help me on that issue.....

CA SMR

CA SMR (Expert)
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06 July 2010 1)Conveyance will be allowed in full irrespective of no. of working days

2)Can be included under salary head.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010 if salary component is like---
a) basic Rs 5000/-
b) AGP Rs 2000/-
c)Conveyance Rs 800/-
d) Medical Allowances Rs 1250/-
e) Variable Allowances RS 3800/-
he is working for 20 days then if conveyance & medial allowances s allowed in full then hs gross salary is more than as shown above.
as per your suggestion it is RS (5000+2000+3800)/30*20 + (800+1250)
but a per me it should be (5000+2000+800+1250+3800)*20/30....
i am confused on that issue please make me clear
thanks for your valuable response..

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CA SMR

CA SMR (Expert)
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06 July 2010 If he is working for 20 days and then paid on prorata basis by his employer,then the amount paid to him as conveyance allowance (800*20/30) will be allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010 thanks Mam for your reply,,,
now I am satisfied

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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09 July 2010 Agreed with first query.

about second query:
This amount will be included in his Income from Other Source, because the same is not receiving from his educational institute and from where he is receiving is not his employer and because this is not his regular activity therefore it should not also come under PGBP.
Therefore, this amount will be included in his Income From Other Sources.

Regards!!!