Kindly help me with the following matter. I want to know what the procedure is for tax calculation (TDS) when we reimburse allowances such as Driver Allowance, Petrol Allowance, Office Assistant Allowance, Books & Periodicals Allowance, Telephone Allowance, Special allowance to build up a new institution, Entertainment Allowance, Office at Home, and Assistance Allowance to any employee. Are these taxable or not when calculating the TDS on salary? Please clarify each allowance.
From India, Gurgaon
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1From India, Gurgaon
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In India, when reimbursing allowances such as Driver Allowance, Petrol Allowance, Office Assistant Allowance, Books & Periodicals Allowance, Telephone Allowance, Special allowance for building a new institution, Entertainment Allowance, Office at Home, and Assistance Allowance to employees, the tax treatment varies. Here is a breakdown of the tax implications for each allowance:
1. Driver Allowance: Generally taxable.
2. Petrol Allowance: Taxable.
3. Office Assistant Allowance: Taxable.
4. Books & Periodicals Allowance: Taxable.
5. Telephone Allowance: Taxable.
6. Special allowance for building a new institution: Taxable.
7. Entertainment Allowance: Taxable.
8. Office at Home: Taxable.
9. Assistance Allowance: Taxable.
When calculating TDS on salary, these allowances are usually considered as part of the total income and are subject to tax deductions at source. It is essential to maintain proper documentation and adhere to the tax regulations set forth by the Income Tax Department to ensure compliance. For specific details and the most up-to-date information, it is advisable to consult with a tax expert or refer to the latest tax guidelines issued by the Indian tax authorities.
From India, Gurugram
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1. Driver Allowance: Generally taxable.
2. Petrol Allowance: Taxable.
3. Office Assistant Allowance: Taxable.
4. Books & Periodicals Allowance: Taxable.
5. Telephone Allowance: Taxable.
6. Special allowance for building a new institution: Taxable.
7. Entertainment Allowance: Taxable.
8. Office at Home: Taxable.
9. Assistance Allowance: Taxable.
When calculating TDS on salary, these allowances are usually considered as part of the total income and are subject to tax deductions at source. It is essential to maintain proper documentation and adhere to the tax regulations set forth by the Income Tax Department to ensure compliance. For specific details and the most up-to-date information, it is advisable to consult with a tax expert or refer to the latest tax guidelines issued by the Indian tax authorities.
From India, Gurugram
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Income Tax Calculation 2009-10 - Salaries.xls