If someone salary is 14000 and mobile allowances are 3000 p/m then is it comes under income tax or taxable for female employee?
From India, Ghaziabad
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1From India, Ghaziabad
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Hi If the total salary for any employee is even 20,000/- then there is no tax. If the total wages is above 20,000/- then you have to plan well to design salary structure.
From India, Bangalore
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From India, Bangalore
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Understanding Allowances and Reimbursements
Is it a reimbursement or an allowance? If it is an allowance, it will be considered part of the salary and is taxable. If it is a reimbursement, it can be exempted from taxation.
Tax Implications for Salary and Allowances
For example, if the salary is 14,000/- and 3,000/- is a mobile allowance, then the total earnings per month are 17,000/- and 204,000/- per year, making the individual out of the scope of tax.
As per the 2016-17 Budget, up to an income of 250,000/-, the tax is nil. Under Section 87A, if an individual is earning less than 500,000/-, they are eligible for a rebate of 2,000/- on the net payable amount of tax.
From India, Ahmadabad
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Is it a reimbursement or an allowance? If it is an allowance, it will be considered part of the salary and is taxable. If it is a reimbursement, it can be exempted from taxation.
Tax Implications for Salary and Allowances
For example, if the salary is 14,000/- and 3,000/- is a mobile allowance, then the total earnings per month are 17,000/- and 204,000/- per year, making the individual out of the scope of tax.
As per the 2016-17 Budget, up to an income of 250,000/-, the tax is nil. Under Section 87A, if an individual is earning less than 500,000/-, they are eligible for a rebate of 2,000/- on the net payable amount of tax.
From India, Ahmadabad
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