TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Acts & Rules
of of All Acts & Rules
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Amendment to Section 40: Employee benefits over 20% of salary are taxable, excluding gratuity and travel concessions.</h1> Section 40 of the Income-tax Act has been amended by the Finance Act, 1964. The amendment replaces sub-clause (iii) to stipulate that any expenditure incurred after February 29, 1964, providing benefits or perquisites to employees, exceeding one-fifth of their salary, will be considered taxable. Exceptions include gratuity payments, travel concessions, and certain compensations, which are not included in the expenditure calculation. Additionally, a new Explanation 2 clarifies that 'salary' refers to the definition in clause (h) of rule 2 of Part A of the Fourth Schedule.
TaxTMI 
