Hi friends,
Please provide your valuable suggessions to resolve the following querries.
1) How to gross up of salary when net pay is required to pay to employee after deduction of professional tax(200) and Income Tax?
Example: Net pay to employee(Take home) is 50000 p.m, . It is after profession tax and Income Tax.
Employee provides LIC premiums rs. 70000 p.a. u/s 80C.
In this case shall I add that Income tax to employee's salary while making the grossing up of salary?
2) In the above case, can company show and claim that Income tax of employee as its expenditure?
Thanks in advace