CA Pramod Jain (manager finance) (1577 Points)
30 December 2009can any one tell me if a salaried employee can claim servant allowance, if yes then to what extent,and where it is written in it act or case law as i have been unable to trace the same
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 30 December 2009
Dear Pramod,
The employee can not claim servant allowance.It is fully chargeable to tax.
The servant allowance is an obligatory payment.It is made by the employer on behalf of the employee.It is the employee who is enjoying the services of the servants.
Obligatory payments are chargeable in the hands of specified as well as non-specified employees.
anuj dhingra
(Accounts Executive)
(152 Points)
Replied 31 December 2009
I m totally agree with fatima
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 31 December 2009
SERVANT ALLOWANCE IS FULLY TAXABLE,
Amir
(Learner)
(4016 Points)
Replied 31 December 2009
Dear Pramod,
The Totally agree with Fatema, the only thing i would like to mention is IF SERVANT IS HELPING IN THE OFFICIAL WORK THEN THERE IS EXEMPTION u/s 10(14) TO THE EXTENT OF WAGES PAID TO THE HELPER BY THE EMPLOYEE.
CAclubindia
