Dear Friends,
I was doing the re-structuring of CTC structure. I want the clarification on Food Allowance & Attire Allowance
1) Food Allowance : As per IT Act if we provide sodexo passes to the employees to the extent of Rs.50/- per meal in a day then that amount won't attract tax to the employee. But if I give the food allowance within the same limit then will it be taxable in the hand of employees. If yes, then can give the benefit I receive the reimbursement forms in this regard from employees.
2) Attire Allowance : If I provide Attire allowance of lets say Rs.3000/- per month and employee provide me the bills of buying the clothes etc then can I provide them exemption from tax.
Request you to give me your feedback on this on urgent basis.
Thanks in advance.
Regards
Deepak Arora
CAclubindia
