Krish (CA Final ) (3331 Points)
31 October 2010If any employee under Sales Department receives a Car, air conditioner, motor cycle or any other article on achieving a sales target;
What should be the treatment. ? (Under Salary or PGBP)
Actually i have gone through the situation where such perquisites have been treated under Profit and Gain from Business.
CA Saba Naaz
(Chartered Accountant)
(8487 Points)
Replied 31 October 2010
I think ..such perquisites should be taxable under the head "Profits and Gains of Business" as these perquisites are provided for achieving the sales target.
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 31 October 2010
What about employer and employee relationship?
Hari Babu
(CA Student)
(82 Points)
Replied 31 October 2010
Hari Babu
(CA Student)
(82 Points)
Replied 31 October 2010
CA SUNIL KUMAR
(FCA,ACMA,CS)
(53 Points)
Replied 31 October 2010
I think, If there exist employer employee relationship, then whatever received from employer is taxable only under the head Income from Salary subject to the exemptions and caps. If they are in kind, the cost to the employer will be the taxable value.
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 31 October 2010
According to me It will be taxable under the head salaries as follows.
Value of benefit on the transfer of movable assets shall be the Actual Cost to the employer as reduced by the depreciation amount on WDV method calculated for each completed year. fraction if any will be ignored.
Shyamal Mistry
(Final Student)
(282 Points)
Replied 01 November 2010
According to me.........under the head Salaries
Prachi Jindal
(CA-Article-Final-Student)
(129 Points)
Replied 01 November 2010
Here a person got all above mentioned things as a gift in a status of an employee...so taxable under head salaries..but if received on practicing a business then will be taken as PGBP. Gifts received from an employer is taxable as perquisite giving exemption upto 5000...but if it is received not on the services rendered but on any other personal capacity then would be taxable under the head IFOS...Thus employer- employee relationship is important to charge any receipt as salary.
In the case mentioned above assessee may be under employment and practice both and the gifts are received on the basis of his professional qualification and treated as professional receipt and charged under the head PGBP.
shashank gupta
(Ca (pcc))
(35 Points)
Replied 01 November 2010
firstly you have to check employer and employee relationship, if it is exist
then it is taxable under the head salary as a perquisite u/s 17(ii)
as mentioned by CA Azim khan
otherwise it will be taxable under the head income from other sources.
venkatesh
(ca final)
(89 Points)
Replied 01 November 2010
it is taxble under salory head as per my knowledge
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