Dear sirs, 1) Pls adv at what circumstance CCA, Special allowance & Medical allowance can be given 2) What is the maximum limit to avoid IT and FBT Regards, Ramesh kg
From India, Coimbatore
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From India, Coimbatore
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Hi,
CCA and Special Allowances are taxable to the employee. However, if you provide the medical component as Medical reimbursement, where employees submit bills, the same is tax-free up to Rs. 15,000 per annum.
Regarding your query about the circumstances under which you can include these under the salary heading: Both CCA and Special allowances are taxable in the hands of the employee; it is the organization's decision if they want to reduce the tax burden for the employees or if they have more tax-friendly salary packages designed.
I hope this addresses your query. One more thing you could have done was to search on this site itself; your query would have been answered a long time ago. There is a lot of material on CTC available on this site.
Warm Regards,
Anuradha Zingade
From India, Pune
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8CCA and Special Allowances are taxable to the employee. However, if you provide the medical component as Medical reimbursement, where employees submit bills, the same is tax-free up to Rs. 15,000 per annum.
Regarding your query about the circumstances under which you can include these under the salary heading: Both CCA and Special allowances are taxable in the hands of the employee; it is the organization's decision if they want to reduce the tax burden for the employees or if they have more tax-friendly salary packages designed.
I hope this addresses your query. One more thing you could have done was to search on this site itself; your query would have been answered a long time ago. There is a lot of material on CTC available on this site.
Warm Regards,
Anuradha Zingade
From India, Pune
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Maharashtra Special allowance Notification July 14 to Dec 14.pdf
Special allowance -2011 _from 1-7-2011 to 31-12-2011_.doc