Dear friends,
Please specify your opinion regarding this question
Q: Mr. 'A' is an employee of ' XYZ Ltd' . company provides allowance to Mr.A for appointing a servant.
Does the amount paid is taxable in the hands of servant
Niraj K R (article) (28 Points)
17 February 2011Dear friends,
Please specify your opinion regarding this question
Q: Mr. 'A' is an employee of ' XYZ Ltd' . company provides allowance to Mr.A for appointing a servant.
Does the amount paid is taxable in the hands of servant
Pankaj Arora
(Learner)
(3134 Points)
Replied 17 February 2011
Yes it will taxable if employer pays servant on behalf of employee.
Niraj K R
(article)
(28 Points)
Replied 17 February 2011
Thank for your reply
But i think this case lead to double taxation because it will be taxable in the hand of employee as perquisites and also in the hand of servant as salary
Pankaj Arora
(Learner)
(3134 Points)
Replied 17 February 2011
Where is double taxation buddy? Why will servant pay tax if his salary is below from exemption limit of if its above than exemption limit than servant will pay tax.