Tax on tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012

Can anyone tell me treatment of Tax on tax ?

In case of expat employees if company is bearing tax on Salary & on perquisites, will they get exemption of Paying Tax on Tax which is grossed up with earning in order to pay Tax free salary to an employee.

regards,
preeti

Guest

Guest (Expert)

30 October 2012 i did not get what u want to ask
from whose point of view
and kindly log in to caclubindia for future reference

Sunny Sonwal

Sunny Sonwal (Expert)
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31 October 2012 I think you are asking for an expat employee who will be liable or not to pay tax on the having addtional perquisites (For additional Tax arose due to international assigment,Hardship Allowance, etc) whether this expenses beared by his employer.

Then Yes, he is liable to pay tax while at the time of calculation of tax you have to gross up his income by the additional perquisites which are told above.

He can also claim for releif under section 90 or 91.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2012
Yes i was asking for an expat employee only but what if in case of company is bearing Tax Liability for Salary & Perquisites.

How about the Tax Computation? If can help me with the format in excel.

regards,
preeti