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Yes, telephone reimbursement provided to employees is not taxable. This is as per Rule 3(7)(ix) (reproduced below) of the Income Tax Rules. The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under an arm’s length transaction as […]
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Leave a Comment (130) →The income tax department has introduced changes to the Form No. 16 format for 2012-13 by way of its recent circular (Circular No. 4/2013 [F.No.275/34/2011-IT(B)]). As you may be aware, the Form No. 16 comprises two sections – Part A, which presents information on the income tax deducted and remitted across four quarters in a […]
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Leave a Comment (7) →The Government of Andhra Pradesh, by way of a government order (G.O.Ms.No. 82), has ordered changes to Profession Tax. The revised tax slabs for salaried employees in Andhra Pradesh are as follows. Salary for the month in Rs Profession Tax for the month in Rs Less than or equal to 15,000 Nil 15,001 – 20,000 […]
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Leave a Comment (2) →In the previous post, we saw why deducting Profession Tax (PT) equally across six months in locations like Chennai (where PT is calculated for a period of six months) is a bad idea. Let us examine a better method of PT deduction for employees located in places like Chennai. The method should ensure that there […]
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Leave a Comment (15) →Profession tax (PT) is levied by local authorities such as city corporations and municipalities on employees and employers. PT is calculated on the basis of the earned gross salary of employees. In some states (such as Maharashtra and Andhra Pradesh), PT is to be deducted from employee salary and remitted each month to the local […]
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Leave a Comment (76) →We are into the last quarter of the current tax year (Apr 2012 to Mar 2013) and you, as a payroll manager, must be getting ready to collecting and scrutinizing investment proof submitted by your employees for claiming tax rebates for the current year. We send out a guidelines document to all employees in our […]
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Leave a Comment (0) →In our previous post we talked about the why PF should be calculated on gross salary and not on Basic head of pay. Since employees and employers are not mandated to contribute PF on PF Gross (please read our previous post for the definition of PF Gross) over and above Rs 6,500 per month, the […]
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Leave a Comment (47) →A recent article on Provident Fund (PF) deduction in the Times of India has led to a number of employers and employees believe that there will be a significant increase in PF deduction in the near-future. According to the article, as per a recent directive from the PF department, employers will have to contribute and […]
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Leave a Comment (96) →Joyful Payroll
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