Is employee advance is taxable if yes pls provide current tax rate
From India, Delhi
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I want to know current rate for (perk) deduction tax (advance salary provided by employer to employee interest free).
From India, Delhi
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From India, Delhi
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You need to provide more details. Taxation is a complex thing and it can't just be commented on in the abstract. Incidentally, for your information, the tax rate also differs depending on the individual, their income level, etc. Or perhaps you mean the rate of TDS?
From India, Mumbai
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2635From India, Mumbai
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An advance is basically an interest free loan. Such loan of up to Rs 20000/- are exempt from tax. Any amount above it is taxable..
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Under which rule is an advance of above ₹20,000 taxable ? And under which rule is it exempt below ₹20,000
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Sir, Please suggest Weather section 185 & 186 of CA act. 2013 Is applicable on granting loan/Advance to employees by companies Regds vishal
From India, Agra
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From India, Agra
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Vishal Jain, Please let me know what the CA act refers to .... unable to figure that out
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I just checked with our accounts team. If the advance is repaid by the employee, it is not taxable. However, if it is deducted from the salary, it's taxable at the time when the advance was given. There are provisions in income tax that allow employees the benefit of choosing the lower of the differential tax rates (if any) in the case of advance or arrears. Therefore, you need to discuss with your auditor if the tax rates or the slabs change between the advance and the actual salary period.
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From India, Mumbai
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Advance can be deducted from gratuity if agreed by employee - Kolkatta HC 29.11.2012.pdf
Employee Appraisal Form new.doc