Figyan

Income Tax

Is salary paid abroad taxable in India and what are its exceptions

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To understand whether salary paid abroad is taxable in India or abroad, we have to understand the place of accrual of salary. As per our tax laws, the place of accrual of salary is the place of employment.Section 9(1)(ii) states that salary earned for services rendered in India is deemed to accrue or arise in India even if it's paid outside India. Similarly pension paid … [Read more...] about Is salary paid abroad taxable in India and what are its exceptions

Did you know interest free loan to employees is not tax free?

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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?

Is life insurance premium paid by employer taxable as perquisite

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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

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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

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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