Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
10 November 2008X, an employee of ABC ltd, at the time of retirement gets a sum of Rs. 105000 from his employer as appreciation of services in addition to other benefits like gratuity, leave salary etc
Will the amount so recd as appreciation of services be fully taxable or
can it treated as a gift & will be fully exempt as the employer is liable to pay FBT????????
Plz guide
Thanks
Rupesh
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 10 November 2008
Fully taxable as salary. No need for FBT.
PRANAV MISHRA
(CA Final student)
(573 Points)
Replied 10 November 2008
In these cases it is important that such appreciation or gift must be given to employees under any scheme applicable to all employees.If gifts r given purely on a personal basis it would be taxable in the hands of the employer as FBT.In every other case will b Taxable in the hands of the employee,
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 10 November 2008
Money given in appreciation of services can stand the test of adequate consideration, in my opinion.
C.A. M.Com. Suhas A. Nagpure
(CA)
(1175 Points)
Replied 10 November 2008
Mukund Jhakal
(student)
(25 Points)
Replied 11 November 2008
Amount received will be added to gross salary and is fuuly taxable
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 11 November 2008
| Originally posted by :Rupesh Kalantri | ||
| " | X, an employee of ABC ltd, at the time of retirement gets a sum of Rs. 105000 from his employer as appreciation of services in addition to other benefits like gratuity, leave salary etc Will the amount so recd as appreciation of services be fully taxable or can it treated as a gift & will be fully exempt as the employer is liable to pay FBT???????? Plz guide Thanks Rupesh |
" |
Whatever you received from your employer is fully taxable, if there is no treatment regarding such amount, you received, in Income Tax Act
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 11 November 2008
In my opinion any amount paid by an employer to his employee at the time of retirement in appreciation for the employee's past services is called Gratuity. Gratuity is taxable in the following manner;
(a) Non taxable in the hands of Govt employees,
(b) Taxable in the hands of employees other than Govt employees covered under the Payment of Gratuity Act, 1972,
(c) Taxable in the hands of employees other than Govt employees not covered under the Payment of Gratuity Act, 1972.
Regards,
Prabeer Sarkar.
ashu......
(CA)
(29 Points)
Replied 12 November 2008
| Originally posted by :Rupesh Kalantri | ||
| " | X, an employee of ABC ltd, at the time of retirement gets a sum of Rs. 105000 from his employer as appreciation of services in addition to other benefits like gratuity, leave salary etc Will the amount so recd as appreciation of services be fully taxable or can it treated as a gift & will be fully exempt as the employer is liable to pay FBT???????? Plz guide Thanks Rupesh |
" |
It will be taxable in the hands of Employee under the head Salary.
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 13 November 2008
| Originally posted by :PRABEER SARKAR | ||
| " | In my opinion any amount paid by an employer to his employee at the time of retirement in appreciation for the employee's past services is called Gratuity. Gratuity is taxable in the following manner; (a) Non taxable in the hands of Govt employees, (b) Taxable in the hands of employees other than Govt employees covered under the Payment of Gratuity Act, 1972, (c) Taxable in the hands of employees other than Govt employees not covered under the Payment of Gratuity Act, 1972. Regards, Prabeer Sarkar. |
" |
i was talking abt the lumpsum amount recd in addition to gratuity at the time of retirement
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 13 November 2008
The whole of such sum will be taxable under the head "Salaries" in the hands of employee. If the employer gives in the form of gift in kind, then that would be liable for FBT for employer and exempt in the hands of employees.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 13 November 2008
| Originally posted by :M.Sriram Shenoy | ||
| " | The whole of such sum will be taxable under the head "Salaries" in the hands of employee. If the employer gives in the form of gift in kind, then that would be liable for FBT for employer and exempt in the hands of employees. | " |
Im agree with Mr. Sriram
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 13 November 2008
| Originally posted by :M.Sriram Shenoy | ||
| " | The whole of such sum will be taxable under the head "Salaries" in the hands of employee. If the employer gives in the form of gift in kind, then that would be liable for FBT for employer and exempt in the hands of employees. | " |
Im agree with Mr. Sriram
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 13 November 2008
| Originally posted by :M.Sriram Shenoy | ||
| " | The whole of such sum will be taxable under the head "Salaries" in the hands of employee. If the employer gives in the form of gift in kind, then that would be liable for FBT for employer and exempt in the hands of employees. | " |
Im agree with Mr. Sriram
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