Dear friends,
My wife has recently joined a company. Her salary structure includes Special Allowance Rs. 8500/- per month. The Accounts dept says that my wife would have to provide a car hire agreement in order to avoid tax on such allowance. The problem is that I dont have a car and those who do own it may have problems themselves because the car hire amount is paid to them by cheque which entails an entire circle of payments ie. from company to the car owner and from car owner to my wife. Additional burden of income-tax is also involved for the car owner.
Can you suggest any other manner i which the special allowance amount can become non-taxable?
Regards,
Amit
From India, Mumbai
My wife has recently joined a company. Her salary structure includes Special Allowance Rs. 8500/- per month. The Accounts dept says that my wife would have to provide a car hire agreement in order to avoid tax on such allowance. The problem is that I dont have a car and those who do own it may have problems themselves because the car hire amount is paid to them by cheque which entails an entire circle of payments ie. from company to the car owner and from car owner to my wife. Additional burden of income-tax is also involved for the car owner.
Can you suggest any other manner i which the special allowance amount can become non-taxable?
Regards,
Amit
From India, Mumbai
spl. allowance is taxable. Is she covered under tax net? what is her total taxable income?
From India, Lucknow
604From India, Lucknow
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
From India, Lucknow
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 can not be extended to her.
It is futile and un-patriotic 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
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 can not be extended to her.
It is futile and un-patriotic 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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