ONE OF MY CLIENT IS M L A OF GUJARAT VIDHANSABHA . GANDHINAGAR. GUJARAT . FOR THEIR ALLOWANCES VIDHANSABHA HAS ISSUED FORM 16 AND DEDUCTED TDS COSIDERING IT AS SALARY . CAN IT BE SAID AS SALARY INCOME THOUGH RELATIONSHIP OF EMPLOYER AND EMPLOYEE IS MISSING BETWEEN MY CLIENT AND VIDHANSABHA . FURTHERMORE MY CLIENT IS MAINTAING OFFICE AS HE IS MLA FOR PUBLICE CONTACT . CAN WE CLAIM SUCH EXPENSES LIKE OFFICE RENT SALARY TO STAFF ELECTRICITY AGAINST SUCH INCOME
Employer gives Form 16 to their Employees which they get from Employer.
so if employer & employee relation is their so its a salary income.
if its 16A then its not considered as salary income then MLA can get claim expenses of their office and also he/she will add their income from other sourses too.
but for Form 16 he/she will not eligible to claim expenses.
06 April 2012
MLA's are the public representative...The amount that they receive...from Legislative Assembly is not taxable as salary indeed that is taxable under other source but any allowance that they receive is fully exempt.
06 April 2012
thanks for your expert advise . but pay and accounts office issued form no 16 . form 16 should be issued u/s 192 only for salaried person . my question is that M L A being public representative how they can issue form 16 . relying on judgement CIT V. SHIV CHARAN MATHUR (2008) 306 ITR 126 (RAJ) RELEVANT SECTION 15 & 17(2)
06 April 2012
AND SIR IF WE COSIDER IT IFOS THEN ONE BASIC CONDITION IS EXPENSES SHOUD BE INCURRED WITH A VIEW TO GET THE GAIN IT IS IRRELEVANT WHETHER ACTUAL GAIN INCURRED OR NOT . HERE MLA MAINTAING OFFICE FOR ONLY PUBLIC CONTACT AND NOT FOR GETTING ANY FINANCIAL GAIN . SO IN THAT CASE IF WE CONSIDER IT AS IFOS IS IT ADVISABLE TO CLAIM OFFICE EXPENSES .
06 April 2012
hanks for your expert advise . but pay and accounts office issued form no 16 . form 16 should be issued u/s 192 only for salaried person . my question is that M L A being public representative how they can issue form 16 . relying on judgement CIT V. SHIV CHARAN MATHUR (2008) 306 ITR 126 (RAJ) RELEVANT SECTION 15 & 17(2)
06 April 2012
AND SIR IF WE COSIDER IT IFOS THEN ONE BASIC CONDITION IS EXPENSES SHOUD BE INCURRED WITH A VIEW TO GET THE GAIN IT IS IRRELEVANT WHETHER ACTUAL GAIN INCURRED OR NOT . HERE MLA MAINTAING OFFICE FOR ONLY PUBLIC CONTACT AND NOT FOR GETTING ANY FINANCIAL GAIN . SO IN THAT CASE IF WE CONSIDER IT AS IFOS IS IT ADVISABLE TO CLAIM OFFICE EXPENSES .
06 April 2012
Its ok that Accounts Department is issuing Form 16 but when we know and are sure as a professional that income is not taxable under the head of salaries hence you should do the treatment of the same under the head of other sources only...
CAclubindia
