Under what head is meritorious award received by an employee from his employer taxable in his hands????
Can it be treated as part of salary??????Since it is not recurring in nature....
Under what head is meritorious award received by an employee from his employer taxable in his hands????
Can it be treated as part of salary??????Since it is not recurring in nature....
Yes, it will taxable under head salary. There is no rule such if an item in not recurring it cannot be taxed unde the head salary. The rule is anything received ( or in some cases receivable in some cases) is taxable under the head salary. It is taxed on accrued or due, whichever is earlier basis.
Treat it as bonus if received in cash...can treat it as a gift and claim 5000 exemption if received in kind...
But anything received from employer will be taxable under salary only...
Regards!!
CAclubindia
