Dear friends,
Also note the following for your TAX planning:
TAX FREE PERKS U/S 17(2):
Medical benefits provided by the employer in their hospitals/clinics.
Tea and snacks or free food or beverages provided in office or factory or through paid vouchers which are not transferable and usable only at eating joints
Facilities of motor cars
Residential accommodation provided at site
Facilities of club or health club and similar facilities
Expenses on telephone including mobile phones
Employers contribution to staff group insurance scheme
Scholarship to employees or their children paid by the employer
Conveyance facilities
Refresher courses
Facility of guest house or holiday home
Entertainment expenses
Free ration to Armed Forces Personnel
Perquisites to government employees posted abroad
Certain perquisites to High Court and Supreme Court Judges
Rent free houses to certain persons
Laptop and computers provide by the employer for personal use of employee
Interest free or concessional loan if the aggregate dose not exceed 20000 in PY
Periodicals and journals required for discharge of work
Leave travel concessions as per terms and conditions
Modified Provisions:
Holiday facilities-Sec.3(7)(ii)
Free food- Sec.3(7)(iii)
Gifts - Sec.3(7)(iv)
Credit card facilities – Sec.3(7)(v)
Club facilities- Sec.3(7)(vi)
From India, Bangalore
1073Also note the following for your TAX planning:
TAX FREE PERKS U/S 17(2):
Medical benefits provided by the employer in their hospitals/clinics.
Tea and snacks or free food or beverages provided in office or factory or through paid vouchers which are not transferable and usable only at eating joints
Facilities of motor cars
Residential accommodation provided at site
Facilities of club or health club and similar facilities
Expenses on telephone including mobile phones
Employers contribution to staff group insurance scheme
Scholarship to employees or their children paid by the employer
Conveyance facilities
Refresher courses
Facility of guest house or holiday home
Entertainment expenses
Free ration to Armed Forces Personnel
Perquisites to government employees posted abroad
Certain perquisites to High Court and Supreme Court Judges
Rent free houses to certain persons
Laptop and computers provide by the employer for personal use of employee
Interest free or concessional loan if the aggregate dose not exceed 20000 in PY
Periodicals and journals required for discharge of work
Leave travel concessions as per terms and conditions
Modified Provisions:
Holiday facilities-Sec.3(7)(ii)
Free food- Sec.3(7)(iii)
Gifts - Sec.3(7)(iv)
Credit card facilities – Sec.3(7)(v)
Club facilities- Sec.3(7)(vi)
From India, Bangalore
I guess, you wants to add it, to exclude from Minimum Wages Act. In fact, many organization do this, by showing it as project allowance (in case of project in different location), or any other allowance.
As I have also gone through from this.
From India, Nasik
As I have also gone through from this.
From India, Nasik
Dear HR (Anonymous )
Your situation seems to be in confusion. All the esteemed members suggested a correct & appropriate view in your case. Food and accommodation not to be included in the payslip.It may be in CTC for reference purpose. I hope you can understand the whole idea for not including the F&A in salary slips of your employees.
1. Your company will get the Tax benefit for the food and accommodation provided to the employees under welfare-employees.
2. Then showing in the payslip will create further more problem. Once the company takes the advantage of reduced tax and the employees will get levied with the fringe benefit tax is not acceptable.
3. This thing will be against the employee and it will lead to more attrition rate in your company.
4. As a HR you must take care of the benefit of the employees and you are the representative of the employees to take up the issues with management.
So act amicably discuss this issue with your management stating the pros & corns of the issue.
From India, Gurgaon
Your situation seems to be in confusion. All the esteemed members suggested a correct & appropriate view in your case. Food and accommodation not to be included in the payslip.It may be in CTC for reference purpose. I hope you can understand the whole idea for not including the F&A in salary slips of your employees.
1. Your company will get the Tax benefit for the food and accommodation provided to the employees under welfare-employees.
2. Then showing in the payslip will create further more problem. Once the company takes the advantage of reduced tax and the employees will get levied with the fringe benefit tax is not acceptable.
3. This thing will be against the employee and it will lead to more attrition rate in your company.
4. As a HR you must take care of the benefit of the employees and you are the representative of the employees to take up the issues with management.
So act amicably discuss this issue with your management stating the pros & corns of the issue.
From India, Gurgaon
I also Agree with Mr.Boss2966 as a HR we should be favor of employees not management. Mr.Firoz our suggestion is should not show in the payslip.
Even in our company also we are providing free food, accommodation and transportation but we are not showing in the payslip.
Better check your minimum wages what you are paying?
Thanks & Regards,
Shashidhara.GK
HR Manager
From India, Bangalore
Even in our company also we are providing free food, accommodation and transportation but we are not showing in the payslip.
Better check your minimum wages what you are paying?
Thanks & Regards,
Shashidhara.GK
HR Manager
From India, Bangalore
Dear seniours,
Could you help me by answering the following question?????
(1) What are monitoring methods for Payroll activities??
(2) What do you do to stay current with provincial, federal, state, municipal regulations?
(3)8. How to measure/appraise your Payroll…position?
please help me out
From India, Hyderabad
Could you help me by answering the following question?????
(1) What are monitoring methods for Payroll activities??
(2) What do you do to stay current with provincial, federal, state, municipal regulations?
(3)8. How to measure/appraise your Payroll…position?
please help me out
From India, Hyderabad
if food and accommodation is free for u based on the circumstance of ur state depend up on the company it is corret but u need to see the out side of the word how much charge for rooms and the food expenss and the travelling expenss to u dude compare to out side world and better to ask the improve the salary if any mistakets for give what i know i said
From India, Mumbai
From India, Mumbai
Please let us know then what should reflect on salary slip if we are considering Flexi salary structure.
Is it possible that few reimbursement (fully tax exemption) should reflect on slip so that employee can't confuse at all?
should I add, food coupon, Telephone bill etc and reflect it on salary slip. (Our most of employees are millennials)
1. Uniform Allowance:
2. Mobile / Telephone Reimbursement: monthly cap normally of Rs 2000 per month. Please note that reimbursement can be claimed only for Postpaid Connections.
3. Children Education Allowance:
4. Children Hostel Allowance: You can claim max Rs 7,200 p.a. for 2 children.
5. Soft Furnishing Allowance:Max reimbursement is limited to justify the same. For Mid-Managers, Soft Furnishing Reimbursement is restricted upto Rs 50,000 depending on the salary of person. The reason for soft furnishing reimbursement is that employee need to entertain guests at his residence for official purpose and expense incurred to protect office furniture at residence.
6. Newspaper, Books and Periodicals: cap the max limit to Rs 1000 per month.
7. Reimbursement of Conveyance Expenses:
8. Daily Allowance:
9. Research Allowance: Any amount spent & reimbursement claimed by employee for academic research or other professional pursuits including training, short term / online course etc. is fully exempted from income tax on production of actual bills.
From India, Mumbai
Is it possible that few reimbursement (fully tax exemption) should reflect on slip so that employee can't confuse at all?
should I add, food coupon, Telephone bill etc and reflect it on salary slip. (Our most of employees are millennials)
1. Uniform Allowance:
2. Mobile / Telephone Reimbursement: monthly cap normally of Rs 2000 per month. Please note that reimbursement can be claimed only for Postpaid Connections.
3. Children Education Allowance:
4. Children Hostel Allowance: You can claim max Rs 7,200 p.a. for 2 children.
5. Soft Furnishing Allowance:Max reimbursement is limited to justify the same. For Mid-Managers, Soft Furnishing Reimbursement is restricted upto Rs 50,000 depending on the salary of person. The reason for soft furnishing reimbursement is that employee need to entertain guests at his residence for official purpose and expense incurred to protect office furniture at residence.
6. Newspaper, Books and Periodicals: cap the max limit to Rs 1000 per month.
7. Reimbursement of Conveyance Expenses:
8. Daily Allowance:
9. Research Allowance: Any amount spent & reimbursement claimed by employee for academic research or other professional pursuits including training, short term / online course etc. is fully exempted from income tax on production of actual bills.
From India, Mumbai
Dear Concern, Employer provide free food & accommodation to employees.please confirm its covered umder minimum wages. Regards/Sushil
From India, Ghaziabad
From India, Ghaziabad
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