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Tax on Taxation

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18 September 2008 I have a doubt in taxation.

If an employer pays tax of the employee it is considered as a perquisite and is taxable on it.

Hence tax must be paid on the tax which the employer pays. But this will become a never ending situation as whenever u pay tax of the employee u will go on paying tax on tax.

Is there any equation to find out such amount which has to paid.

Kindly answer me

18 September 2008 After the recent decision in SC, tax on tax is not a perquisite.

18 September 2008 Sec.10(10CC)- Tax Paid By Employer Is Non Monetary Benefit And Hence Not taxable.


30 November 2008 Can u give me the decision in SC copy



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