Perks & Jerks for Employees!
Perquisite Rules Mere ‘Old Wine In New Bottle’
Salaried Get No Relief From Anomalies & Inequities
With virtually no reprieve from the tax burden on their pay packages and continuing anomalies and inequities, the new rules for valuation of perquisites announced by the Central Board of Direct Taxes (CBDT) on December 18, 2008 have hugely disappointed millions of salaried employees. (more…)
Perk up your Employee’s Diwali with a Tax-free Gift!
Gift Below Rs.5,000 On Ceremonial Occasion
Treated As Tax Free Perk Under I.T. Rules
“If you give what can be taken, you are not really giving,” quoted the noted Sufi author Idries. Trying to think of giving something to your employees during the coming festive season, out of which even the Taxman cannot take anything? Here is a smart idea!
Minus Social Security : EET=Inequity
Hard Hit Small Salaried Deserve Lower Starting Tax Rates!
Both Employment & Retirement Made More Taxing!
- Allowances & Perks – no longer exempt: House rent allowance (HRA), leave travel concession (LTC), medical reimbursement, value of free or concessional medical treatment and children’s education & hostel allowance.
- Puny deductions that will still continue: Professional tax paid, transport allowance to the extent prescribed and prescribed special allowances to meet expenses incurred for official duties.
- Retirement may not be as relaxing: Leave encashment on retirement, to be fully taxable.
- VRS compensation, death or retirement gratuity and commutation of pension to be exempt, only if deposited in a Retirement Benefit Account (RBA).
- However, any amount drawn from RBA (including PF contributions and accretions after 1st April, 2011) under any circumstances to be treated as taxable in the year withdrawal. (more…)
Not the Common Man’s Tax Code!
Small Salaried & Investors To Feel Soar!
Amar Bhatt, a middle class employee earning monthly salary of Rs 40,000 (annual Rs 4,80,000), currently manages to maintain a zero tax status by availing tax-free LTC & medical perks of Rs 70,000, deduction of interest on housing loan of Rs 1,50,000 and repayment of such loan of Rs 1,00,000 eligible for deduction u/s.80C.He is bound to be shocked when he gets to know that with the elimination of the exempt perks and scrapping of housing deductions as proposed under the new Direct Tax Code, his taxable income of Rs 4,80,000 will attract a straight tax of Rs 32,000. (more…)