Query on Leave Reward System and Tax Exemption
If an organization has a reward system in the monthly salary, meaning if any employee doesn't take any leave in a particular month, they will receive one day's salary as a reward. However, this reward is not fixed and depends on the presence of that particular employee in that month. According to the Income Tax Act, is this amount of leave award exempted from salary income tax or not?
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From India, Pune
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1If an organization has a reward system in the monthly salary, meaning if any employee doesn't take any leave in a particular month, they will receive one day's salary as a reward. However, this reward is not fixed and depends on the presence of that particular employee in that month. According to the Income Tax Act, is this amount of leave award exempted from salary income tax or not?
Thanks
From India, Pune
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Mahesh, this is definitely not exempt from income tax. Attendance rewards are fully taxable under IT laws. From salary income, only a few components are exempt, which are given in section 80(c) to 80(u), section 24 (housing loan), section 16, etc., of the IT Act 1961.
From India, Mumbai
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From India, Mumbai
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SALARY CALCULATOR & INCOME TAX.zip
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