Joining bonus is an amount paid to a new employee by a company as an incentive to join them. Normally employer pays a lump sum amount at the time of joining to lure experienced peoples from the competition. According to income tax act, joining bonus will be treated as profit in lieu of salary and will be taxable in the hands of the employee who receive it. When you receive … [Read more...] about Joining bonus – Income tax liability for receiving joining bonus
Income tax
Income Tax Liability On Your Education Allowance
Any education allowance you received for your children will be exempted to the extent of following; Rs. 100 per month per child up to a maximum of 2 children to meet the cost of education and Rs. 300 per month per child up to a maximum of 2 children as hostel expenditure. If you have twins after the first child then you will be eligible for all of your three children … [Read more...] about Income Tax Liability On Your Education Allowance
What is profit in lieu of Salary – Section 17(3) of Income Tax Act
Any payment received or due in addition to your salary or wages from your employer is called profit in lieu of salary. Section 17 (3) of income tax act defines profit in lieu of salary as follows; "Profits in lieu of salary" includes— (i) the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the … [Read more...] about What is profit in lieu of Salary – Section 17(3) of Income Tax Act
VRS (Voluntary Retirement Scheme) – exemption from income tax
Voluntary retirement scheme (VRS) is an early retirement option given by the employer to its eligible employee by compensating them for taking a early retirement. Most of the public sector banks, PSU and private companies opted for voluntary retirement scheme (VRS) in past to restructure there organization. Voluntary retirement scheme (VRS) is also accepted by trade union as … [Read more...] about VRS (Voluntary Retirement Scheme) – exemption from income tax
Leave Travel Allowance (LTA) Exemption under Income tax Act
Leave travel allowance or LTA is an allowance received by an employee from his employer to travel any likable place according to his choice. LTA can be obtained every year from the employer but the exemption can be claimed two times in a block of 4 years. The recent block of 2010-2013 for leave travel allowance will be over on 31st December 2013. If for any reason you are … [Read more...] about Leave Travel Allowance (LTA) Exemption under Income tax Act
No Need to file Income tax return if you have only Salary Income up to Rs. 5, 00,000
If your earning is up to Rs, 5, 00,000 during the financial year then you may not require filing your income tax return. From the financial year ending 31st march 2012, if an individual’s total income does not exceed Rs. 5, 00,000 and consists of only salary and/or interest from a bank saving account not exceeding Rs. 10, 000 then he is exempted from filling his IT return. … [Read more...] about No Need to file Income tax return if you have only Salary Income up to Rs. 5, 00,000
Income Tax Provisions On Pension
Pension is a monthly payment made by the employer after the retirement or death of the employee as a reward of past services. Its always taxable under the head income from salaries. Income tax act provides exemption if the employee has opted for commutation. Therefore, employees getting commuted pension can avail exemption benefits while paying tax. What is commuted pension It … [Read more...] about Income Tax Provisions On Pension
Gratuity – Section 10(10) of Income tax act
Gratuity is a payment made by the employer in appreciation of past services of employee. It can be paid at the time of retirement or resignation or termination of employee from his employment. Income tax act provides exemption for the amount an employee receives as gratuity from his employer. After this exemption the rest will be taxable in the hand of employee under the head … [Read more...] about Gratuity – Section 10(10) of Income tax act
How online efiling of your income tax return works
Efiling of your income tax is mandatory for those individual whose income during the previous year increases Rs. 5, 00,000. For efiling of your income tax return you can either avail the services of one of the e-return intermediaries or free online services available at IT web site. Followings are the popular efiling intermediary who provides online efiling … [Read more...] about How online efiling of your income tax return works
Income Tax on Medical Expenses – For Salary Individuals
You can claim income tax relief for your medical expense under different sections of income tax act 1961. If you have been reimbursed by your employer for the medical expenses and you have met all the conditions under the income tax act then such reimbursed amount will not be taxable in your hand. If you have spent or incurred such expenditure which your employer has not … [Read more...] about Income Tax on Medical Expenses – For Salary Individuals