Dhruv Patel (Final) (93 Points)
20 August 2010Please Answer my below three Questions.......
( 1 ) When an Employee will be eligible For Leave Travel Concession? What are the requirements for it? Will the company get the deduction for LTC?
( 2 ) P.F. contribution by employer is 120000. How will the employer get deduction for the same?
( 3 ) How will the employee get deduction for his P.F. contribution u/s 80C?
Thanks
Dheeraj
(Learner)
(1100 Points)
Replied 20 August 2010
1) LTC IS LIKE A PERQ & STATED IN TERMS OF SERVICE
NORMALLY IT IS GIVEN TO GOVT EMPLOYEES & THERE IS NO ANY SPECIAL CONDITION , BY FOLLOWING IT HE CAN AVAIL THE CONCESSION
AS IT IS IN TERMS OF SERVICE, THE CO. CAN GET THE DEDUCTION
2) ON RETIREMENT OF EMPLOYEE, EMPLOYER CONTRIBUTION IS TAXABLE IN THE HANDS OF EMPLOYEE & EMPLOYER GET THE DEDUCTION BY DEPOSITING AMOUNT IN EMPLOYEES' A/C & IN CASE OF RPF EMPLOYER CONT IS EXEMPT IN THE HANDS OF EMPLOYEE
3) DURING JOB, EMPLOYEE CONTRIBUTION IS TAXABLE BUT EMPLOYER CONTRIBUTION IS EXEMPT,
& WHILE FILLING OF ITR, AN EMPLOYEE CAN GET THE DEDUCTION.
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