Dear friends,
My wife has recently joined a company. Her salary structure includes Special Allowance of Rs. 8500 per month. The Accounts department says that my wife would have to provide a car hire agreement to avoid tax on such allowance. The problem is that I don't own a car, and those who do may face issues themselves because the car hire amount is paid to them by cheque, leading to a complex cycle of payments—from the company to the car owner and then from the car owner to my wife. Additionally, there is the added burden of income tax for the car owner.
Can you suggest any other way in which the special allowance amount can become non-taxable?
Regards, Amit
From India, Mumbai
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My wife has recently joined a company. Her salary structure includes Special Allowance of Rs. 8500 per month. The Accounts department says that my wife would have to provide a car hire agreement to avoid tax on such allowance. The problem is that I don't own a car, and those who do may face issues themselves because the car hire amount is paid to them by cheque, leading to a complex cycle of payments—from the company to the car owner and then from the car owner to my wife. Additionally, there is the added burden of income tax for the car owner.
Can you suggest any other way in which the special allowance amount can become non-taxable?
Regards, Amit
From India, Mumbai
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spl. allowance is taxable. Is she covered under tax net? what is her total taxable income?
From India, Lucknow
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616From India, Lucknow
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HRA or actual house rent paid can be claimed for tax exemption. If she own a car or two wheeler, tax exemption is available towards fuel & maintenanace charges.
From India, Lucknow
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From India, Lucknow
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Dear Amit,
The referred exemption is available only when an employee owns a car and uses it for official work. When your wife does not own a vehicle, this tax exemption cannot be extended to her. It is futile and unpatriotic to insist on a way to avoid tax payment. You should feel happy and proud that the IT you pay is used in building the nation.
Warm regards.
From India, Delhi
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The referred exemption is available only when an employee owns a car and uses it for official work. When your wife does not own a vehicle, this tax exemption cannot be extended to her. It is futile and unpatriotic to insist on a way to avoid tax payment. You should feel happy and proud that the IT you pay is used in building the nation.
Warm regards.
From India, Delhi
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