Income tax department has issued the updated schema for ITR – 1 SAHAJ (INCOME TAX RETURN 1) for Assessment year 2014-15 i.e. Income Tax Return for financial year 2013-14 (For period 1stApril 2013 – 31st March 2014). ITR-1 SAHAJ (Income Tax Return 1) form is essential for filling the Income tax Returns with the Income… Read More »
Income tax liability on amount received at the time of Voluntary Retirement. VRS compensation received by an employee at the time of his voluntary retirement in accordance with prescribed guidelines is exempt up to Rs 5 lakhs. Different schemes can be framed for different classes of employees but within the guidelines. So Maximum tax exemption for VRS… Read More »
Perquisites are the most common form of non cash or cash method through which employer try’s to compensate this employees i.e. benefit other than basic salary and dearness allowances. Perquisites are defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. Perquisites can fall is three… Read More »
The voluntary retirement scheme (VRS) is the most useful technique to provide overall reduction in the existing strength of the employees. It is a technique used by companies for trimming the workforce employed in the industrial unit. It is now a commonly method used to dispense off the excess manpower and thus improve the performance… Read More »
Any remuneration paid by an employer to an employee in consideration of his services is called salaries. It includes monetary value of those benefits and facilities, which are provided by the employer and are taxable. They include basic salary, advance salary, fees, commission, and bonus, taxable value of cash allowances, perquisites and retirement benefits. Allowance… Read More »
Salary means remuneration paid to the employee by the employer for the services rendered by him during a period of time.”Salary” includes wages, fees, commissions, perquisites, profits in lieu of, or, in addition to salary, advance of salary, annuity or pension, gratuity, payments in respect of encashment of leave etc. In this article we will… Read More »
House Rent Allowance (HRA) allowance is received by the salaried class employees. HRA allowance is allowed as per the section 10(13A) of Income tax act in accordance with the Rule 2A of the Income Tax Rules. Under Section 10(13A) of the Income-tax Act, 1961, any special allowance specifically granted to an assessee by his employer… Read More »
Salary, in simple words, means remuneration of a person, which he has received from his employer for rendering services to him. But receipts for all kinds of services rendered cannot be taxed as salary. The existence of an’ employer-employee’ relationship is a must for a payment to be taxed under the head salaries. Accordingly, the… Read More »
Normally it is an annual income received by the employee from his employer or it is a reward of his life time services which was given by him to the organization. As Per section 17(1) (ii) of the Income Tax Act, 1961 Annuity or Pension is payment which is made by the employer to the… Read More »