taxable allowance or not ?

Page no : 2

vinayak (article clerk) (62 Points)
Replied 14 December 2010

It's Exempt Perquisite not taxable as Per Sec.17(2)

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Raju (Meger, Aquisi,Takeover) (Audit Assitant) (56 Points)
Replied 14 December 2010

according to the definition of allowance given in Income tax act it is 100% Taxable it will be included in your salary

but according the the income tax rule if the telephone allawance is the perqisites than it will be exempt , that means it will not included in your salary

but the main problem is that practically how would you you recognize that it will be the perqiuisites or allawance for giving the exemption.

solution if it is inculded in the salary sheet that means it is allawnace and it will be taxable 100% and if it is not in the salary sheet it is called perquisites and it shall be exempt

thanks

Max Payne (employed) (2574 Points)
Replied 14 December 2010

1.Reimbursement of mobile phone bills is not a taxable perquisite

by virtue of proviso to Rule 3(7)(ix).

2. If the telephone allowance is for official purpose, exemption may be claimed u/s 10(14)

to the extent of amount spent for official purpose

3. Otherwise taxable.

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 14 December 2010

Originally posted by : Pulkit Gupta
	Telephone allowance is 100% taxable. There is a diff. b/w allowance and perq. Free telephone facility available is a diff. thing and a seperate telephone allowance in addition to salary is different. That's my opinion. May be I am wrong.

Devendra (Chartered Accountant) (4775 Points)
Replied 14 December 2010

It is taxable.

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CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 14 December 2010

100% taxable .no doubt

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 14 December 2010

defnately taxable. as the telephone allowance is given as a fixed allowance to employees irrespctive of its actual expenditure would be.

Regards,

Manoj

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 15 December 2010

Its Taxable under head Salary.

(Guest)

Originally posted by : Jyotsna
	Telephone allowance is 100% taxable. agree with pulkit ..so taxable in salary head.............. this is allowance so it is 100% taxable whereas treatment of perq is different

kantijain (Chartered Accountant in Practice) (385 Points)
Replied 09 February 2011

Dear deepak, Rule 3(7)(ix) specifically exclude the same, therefor the same is not taxable.

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suresh (student) (48 Points)
Replied 09 February 2011

Yes it is 100% taxable because it is fixed allowance. if it is reimbursement or providing it is not taxable.

CA Shiv (Business Controller) (2987 Points)
Replied 09 February 2011

Do no term it as Allowance....

The better is to give as a reimbursement to the employee on show of the bill. So that wont be taxable to employee and now since FBT is not there company is also safe.