Certain employers in India offers low interest or interest free loans to their employees as a benefit. The value of the benefit resulting from concessional or interest free loan provided by the employer to the employee during the relevant previous year shall be considered as value of perquisite taxable in the hands of the employee.It will also be considered as perquisite … [Read more...] about Did you know interest free loan to employees is not tax free?
Income Tax
Is life insurance premium paid by employer taxable as perquisite
Any amount paid or payable by the employer whether directly or through a fund other than a recognized provident fund or an approved superannuation fund or deposit linked insurance fund to effect an insurance on the life of the assessee or to effect a contract for an annuity is treated as taxable perquisite in the hands of the employee.Therefore, the value of the perquisite … [Read more...] about Is life insurance premium paid by employer taxable as perquisite
Value of perquisite on movable assets provided by employer
Value of benefit resulting from the use of any movable assets owned or hired by the employer shall be considered as perquisite if used by employees for any purpose other than official.Value of perquisite shall be determined based on the type of assets used by the employee. Value has to be determined as follows:For use of laptops and computers - NilFor assets other than … [Read more...] about Value of perquisite on movable assets provided by employer
Expenses qualify for income tax deduction under section 80C
In chapter VIA of income tax act, 1961, the most widely used option to save tax is section 80C. This section allows an individual and HUF to save tax by investing in or spend on certain specified avenues. The maximum limit up to which you can claim tax deduction under section 80C is Rs 1,50,000 for the financial year 2018-19 and 2019-20.In this article, we will discuss … [Read more...] about Expenses qualify for income tax deduction under section 80C
Tax deduction on royalty income of book authors – Section 80QQB
An individual who is resident in India and is an author of a book is eligible for tax deduction under section 80QQB of the Income Tax Act, 1961. To get eligible, royalty income should have been incurred from a book should be a work of literary, artistic or scientific nature. This means, author of other types of books which are not literary, artistic or scientific nature are not … [Read more...] about Tax deduction on royalty income of book authors – Section 80QQB