Generally exemption for HRA is allowed to all employees except those specifically stated in the Act i.e.. employees who are staying in their own house.One of my client who is a state govt. employee who is residing in the quarters provided by the Department and he claims for HRA exemption in respect of rent paid to the Dept.But the Department has not accepted his stand and stating that when the quarters is occupied by the employee he cannot claim HRA .
STATE WHETHER IT IS CORRECT

One Partnership Firm has paid many times Rs. 1500 as weighing charges which amount to total Rs. 55000/- during the year. All these payments are to the same person. Is it liable to TDS u/s. 194C or any other section ?

One partnership firm has got its motor car repaired at XYZ Motors P. Ltd. Bill amount is Rs. 39,000/- which includes Spares parts charges also. Should that firm deduct tax at source u/s. 194C ? Pls. give answer by considering the following supporting Circular of CBDT.

Maintenance contracts - Routine maintenance contracts including supply of spares would be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source—Circular : No., dated 8-8-1995.

Restriction on cash payment > Rs. 20,000 : FM has proposed to disallow cash all the expenses incurred other than by account payee cheque or demand draft in excess of Rs.20,000 or more in a single day as against earlier provision of Rs. 20,000/- per transaction.

pl clarify the effect .. means if any single day pmt under whatsoever head is made exceeding rs 20,000/- the same shall be disallowed.

Hello All members of CAClubIndia,

The question is on taxability of medical re-imbursement claims in the hands of Employee.

If employee claims the medical re-imbursement over and above of Rs. 15,000, say 16,000 in a particular financial year ,what will be the correct amount liable to Income Tax for Employee ?

Is it the whole amount claimed i.e. Rs. 16,000 or only the excess amount of Rs. 1000 ?

Beacuse I read different views. One is saying only Rs. 1000 and other saying whole Rs. 16,000 will get taxable in the hands of employee.

I have deducted the TDS for one of our employee by taxing the whole claim of Rs. 16,000. If it is wrong how shall I rectify it before the close of this F.Y. ?

Please Advise.......

Thanks and Best Regards,
Amit

X is an employee of AB ltd whose salary structure is as follows:
1). basic and allowances Rs. 30 lakhs p.a.
2). Perks Rs. 18 Lakhs p.a.

Query:
a). What is the best salary structure to minimise the tax liablity?
b). whether the assessee "X" is benefited by claiming HRA or Rent free accommodation?
please Urgent.

sir
in the case of company surcharge is applicable if total income exceeds 1cr.
in this total income inthe sense taxable income or before deducting expenses and deductions

A Sub-Contract given to the party for Site cleaning, leveling, compound work etc (Land Development). Suppose Party is from Pune and Site is at Guwahati. Party Claim the travelling expenses on his letterhead without attaching any supporting.

Should i deduct TDS on travelling claimed by party? if yes at what rate & under which section?

If Possible give case reference under itr

My client run MLM company and charge Rs. 2600.00 from members. Out of this He Credit Rs. 130.00 for service charges, Rs. 470.00 give General Insurance Polocy and Balance Rs. 2000.00 He book under Credit Liabilities. This way he accumulate Rs. 2000.00 under current liabilities and Pay the commission or incentives to members whenever they achieve certain target and deduct TDS from this payment.
I want to know is this the right accounting method.
Can we directly credit under current liabilities with crediting such receipt to P&L a/c.
Please guide me.

RESPECTED MEMBERS,

PLEASE GIVE US THE INFORMATION REGARDING THE TDS RATES FOR SECURITY PAYMENT CHAGES. WHETHER IT FALL IN 194J OR 194C.

WHETHER TECHNICAL OR MANAGERIAL SERVICES FALL IN 194J.

THE PAYMENT FOR SECURITY CHARGES IS GOES TO THE "TOPS SECURITY LTD."