VIKASH (DIRECTOR) (80 Points)
19 March 2014I am paying TEL. Allowance 700/= rs. per month and
Conveyence allowance 800/= rs. per month to my employees.
Do i need to add above payments in basic salary for computatino of taxable salary
for deduction of tds.
regards.
vikash tibarewala
director - vikash durables ltd.
9936699412
Anjan
(Chartered Accountant)
(69 Points)
Replied 19 March 2014
Dear Vikash,
Telephone allowance is taxable. so it should be included in the basic salary for the computation of TDS.
If the conveyance allowance is paid to meet the expenditure on conveyance for perfoming duties for an official purpose, it is totally tax exempted. No need to include in basic salary for computation.
CA SUKSHAM ARORA
(CA)
(569 Points)
Replied 19 March 2014
AGREED WITH ANJAN, TDS SHOULD BE CALCULATED ACCOPRDING TO NORMAL COMPUTATION OF INCOME TAX OF THE EMPLOYEE
VIKASH
(DIRECTOR)
(80 Points)
Replied 19 March 2014
Thanks for your reply.
But there is a limit of Rs. 9,600 on TRANSPORT ALLOWANCE ?
So is there any differece in Transport Allowance And Conveyence Allowance ?
If conveyence allowance is paid SOLELY FOR performing duties say rs. 12,000 per
year and also Transport allowqance is paid rs. 9600 per year ( for office to residence to & fro transfere) - than will both be exempt.
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Originally posted by : Anjan |
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Dear Vikash, |
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Anjan
(Chartered Accountant)
(69 Points)
Replied 19 March 2014
Dear Vikash,
Conveyance paid for the official purpose is fully exempted from tax with out any limit. But the Transport allowance which is paid to meet the expenses when travelling from office to home and home to office is exempted up to Rs800 per month
In your case, 12000 conveyance allowance and 9600 transport allowance is expemted from tax.
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