My friend worked in One IT Company where he has signed bond for 1.6 year. He was paying 7000 p.m. by company. The Company give him a cheque of Rs. 30000/- dated 31/03/2014 on asked to return back cash to company. Company do this with other employee also. what is the purpose of this? How it benefit The Company?
9 Replies
Studentsca
(CA Practice )
(3577 Points)
Replied 17 April 2014
Legally Company is not in default but the employee can be, so the company is not defaut.
Also the employee can't do case against the company.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 17 April 2014
Dear Mahesh
the only benefit to the company is that comapny can show salary expenses of rs. 30000 pm instead of 7000/-
such type of practice is done by many schools and small companies/ organisations.to save tax.
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 17 April 2014
but this is wrong practice....
it is for tax evasion?????
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 17 April 2014
and dear mahesh by doing this company is saving tax but ur frnd will be liable for paynig tax b'coz his income is in the eyes of law is 30000 instead of 7000 pm.
saurabh sharma
(article)
(56 Points)
Replied 17 April 2014
Yes rahul right. so mahesh tell your friend to ask for his tax liability from company...
Mahesh
(CA Student)
(338 Points)
Replied 17 April 2014
Thanks to all, but he was appointed in company on August 2013 and this is first time company done this, so by giving only 1 cheque on 31/03/14 will make assumption that company paying that much amount monthly OR this is any YEAR ENDING Adjustment?
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 18 April 2014
but a truth is also we know that in india one can not have its own his house during his life tym by his original white income.....bcoz the tax system fo india......
so the if snake should live than rat should be killed......its lfie,,,,,,
Mahesh
(CA Student)
(338 Points)
Replied 18 April 2014
Now I understand the thing clearly........Thank You All for your Inputs......
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