Page 251 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes 2. Providing for use of Computer or Laptop.

3. Gifts in kind up to ` 5000 is exempt.
4. Telephone charges or Mobile charges are not chargeable to tax.
5. Amount spent for providing free education facilities and training of employees is not
taxable.

6. Free Food & Beverage
7. Medical Facility
8. The amount of employer contribution towards
(a) Recognised PF (Up to 12% of Salary).
(b) Approved superannuation fund.

(c) Group insurance schemes.
(d) Employees state insurance schemes.
(e) Fidelity Guarantee Scheme
9. Children Education Allowance : ` 100/child Max for 2 Children

10. Hostel Expenditure Allowance ` 300/child Max for 2 Children
11. Medical Expenses Reimbursement*Max Up to ` 15000 pa
12. Transport Allowance ` 800 pm (Irrespective of the amount spent)
13. Leave Travel Allowance
Computation of Taxable Salary Income as shown in table 10.4.

Table 10.4: Computation of Taxable Salary Income

Particulars Amt (`) Amt (`)
Gross Salary Income xxx
Add: Value of Perquisites Chargeable to Tax xxx
Add: Profits in Lieu Of Salary xxx xxx

Less: Allowance to the extent Exempt From Tax
1. House Rent Allowance* XXX
2. Leave Travel Allowance* XXX
3. Children Education Allowance: XXX
` 100/child Max for 2 Children XXX XXX
4. Hostel Expenditure Allowance XXX
` 300/child Max for 2 Children XXX XXX
5. Medical Expenses Reimbursement* XXX
Max Up to ` 15000 pa XXX XXX
6. Transport Allowance XXX
` 800 pm (Irrespective of the amount spent) XXX XXX
Less: Deduction under Section 16 :
1. Professional tax xxx Xxx
2. Entertainment Tax xxx
Income from Salary Xxx

Source: http://www.taxpeople.in/Tax_Planning_For_Salary-%20CTC.html

246 LOVELY PROFESSIONAL UNIVERSITY