an emlployer incurs expenses for legal defence of a criminal charge against his employee .is the employee liable to tax for such expenses?give reason.
kumarsatish022
(Professional)
(165 Points)
Replied 13 June 2010
i dont understand where is scope of income ,it is duty of employer to safeguard his /her employee
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 13 June 2010
hi john,
first of all, there no income for the employee. then how the tax liability will come for the employee.
i am wrong, kindly elaborate your query.
fine...
C.Balaji
(Learner)
(1867 Points)
Replied 13 June 2010
Why should we tax the employee???? The expenses are incurred by employer...No income to employee...
daya shankar singh
(CA ,CS)
(629 Points)
Replied 14 June 2010
as per the persual of ur query, it is not clear that whether the employer is paid the legal charges as under the contractual agreement with the employee or any other reason which might be arise due to the act of the company. The chargeability is depend on the fact of the case.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
