Queries: Income from Salary
Rohit Gupta
(Querist) 09 January 2010
This query is : Resolved
Dear All
Please help me with the following queries:
1. Whether cash gift given to employees by the employer are fully taxable in the hands of employees in all cases?
2. Whether reimbursement of Coaching fees given by the employer is fully taxable in the hands of employees in all cases?
3. Is special allowance given as a part of salary fully taxable?
Please quote reference of relevant sections of the Income Tax Act.
Thanks alot!
Raj Kumar Makkad
(Expert) 10 January 2010
1. Yes.
2. Not in all cases. If it is withing limitation then it is not taxable.
3. yes.
soumitra basu
(Expert) 10 January 2010
I do agree with Mr. Makkad.
Rohit Gupta
(Querist) 11 January 2010
Please mention the specified limit relevant for query no. 2...
Thanks...
Vineet
(Expert) 11 January 2010
1. Gifts in excess of Rs 5000/- PA are taxable as perks.(Rule 3)
2. Entire amount taxable in hands of employee. Children education allowance Rs 100 per child per month for max two children allowed as exempt (Rule 2BB)
3. All special allowances fully taxable unless they fall within limits prescribed in section 10(14) [Rule 2BB].
