Computation of total income.
This query is : Resolved
02 April 2015
Learned experts,
My son is a software engineer. When he was about to quit the company, they paid him cash incentive. Now he proposed to leave the company.
The terms put forth by the employer are:
1. He should pay back the incentive.
2. He should pay back three months pay.
My son did both. My query is:
can the amounts at 1 and 2 above be deducted from salary income for computation of income tax/ If so, kindly mention the provision of law.
thnax in advance.
My son is a software engineer. When he was about to quit the company, they paid him cash incentive. Now he proposed to leave the company.
The terms put forth by the employer are:
1. He should pay back the incentive.
2. He should pay back three months pay.
My son did both. My query is:
can the amounts at 1 and 2 above be deducted from salary income for computation of income tax/ If so, kindly mention the provision of law.
thnax in advance.
02 April 2015
whether Point no. 1 & 2, is mentioned in the employment agreement or appointment letter?
02 April 2015
Dear venkatsh ji salary is taxable in the hands of employees on receipt or accrual basis whichever is early. Hence the amount received by your son would be taxable. As far as amount paid to company is concerned your son can not avail the benefit of same as income tax act does not contain the provision for allowance of auch expense under the head salary. I know it's a hardship on employees but it's like it and wish your son for good increment and career ahead.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
