CA D Santosh Kumar Patro (Asst. Manager Finance & Controlling) (88 Points)
20 August 2009
Krutesh Patel
(ACA)
(727 Points)
Replied 20 August 2009
No. It is part of employees salary and fully taxable to employees
CA D Santosh Kumar Patro
(Asst. Manager Finance & Controlling)
(88 Points)
Replied 20 August 2009
| Originally posted by :Krutsesh Patel | ||
| " | No. It is part of employees salary and fully taxable to employees | " |
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 20 August 2009
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 21 August 2009
The monetary benifit is given to the employee to settle in the new location. It needs to lift the veil and see the purpose of the offering such amount, U said,
"location shifting allowance" i.e. some moneytary benefit is provided if the employee transfer from one location to anthor location for incurring expenses for get settle in the new locatoin,"
Now, it seems that the expenses given for settleing is actually the amont to help the employee with the cost of living of the new place. also whether the new location is shifted by reason of the employer's work that is to say for office purposes. In any case, the reason of the transfer to new location is needed that is wehter it is for employee's own purpose or by virutue of the work or duty it performs........
Sec.10(14) read with Rule2BB tax it as the latter one......... and hence it should be included it in the salary sheet as benifit of amenity as it is for the official duties.........
But if it is for the former, that for his own purpose, then such may be called as employee welfare.................in any case, dear!, before reaching to any conclusion, the reason to shifting is needed..........
Shivish Verma
(C A)
(376 Points)
Replied 23 August 2009
Shivish Verma
(C A)
(376 Points)
Replied 23 August 2009
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 24 August 2009
Maternity benefit is treated like normal salary under the IT Act.
It is a benefit which an employee can avail and, therefore, its tax treatment is meted out in the similar fashion as salary in the hands of an employee.
An employer can claim deduction U/S 37 in the same manner as salary under the provisions of the IT Act.
And as for FBT purposes, since maternity pay is paid under the Maternity benifit act, 1961 which is a statutory payment, no FBT can be levied by virtue of clause (i) to the Explanation to 115WB(2)(E).
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