Meaning of salary u/s. 10 (13a)
This query is : Resolved
31 July 2013
Whether Ex-gratia and Bonus is to be treated as a part of salary while calculating exemption of House rent allowance u/s 10 (13a)
02 August 2013
No. Salary meaning for calculating HRA exemption u/s.10(13A)is
Basic salary, Dearness allowance(if forming part of computing retirement benefits) and Commission based on turnover achieved by the employee.
No other components can be considered
Basic salary, Dearness allowance(if forming part of computing retirement benefits) and Commission based on turnover achieved by the employee.
No other components can be considered
03 August 2013
Thanks Mr. Ramesh, I request you please to reconsider your opinion in view of the following :-
As per first explanation to Rule 2A "salary" shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;
and as per rule 2 h of Fourth schedule "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.
This is an inclusive definition of the term salary which means salary includes dearness allowance and all other receipts to an employee but excluding all other allowances and perquisites.
The exgtratia payment is neither allowance nor a perquisite. This payment is a profit in lieu of salary and hence includible in salary for calculation of exemption limit u/s. 10 (13A).
As per first explanation to Rule 2A "salary" shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;
and as per rule 2 h of Fourth schedule "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.
This is an inclusive definition of the term salary which means salary includes dearness allowance and all other receipts to an employee but excluding all other allowances and perquisites.
The exgtratia payment is neither allowance nor a perquisite. This payment is a profit in lieu of salary and hence includible in salary for calculation of exemption limit u/s. 10 (13A).
31 August 2013
All allowances which qualify for retirement benefits are to be treated as the salary including Bonus
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?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- COP Surrender 2024
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
