Deduction limits for employer-provided salary-related expenditures restricted, with excess disallowed and specified caps and exemptions under amended Section 40A. New subsection bars deduction for expenditure that results in payment of salary or provision of perquisites to employees or former employees when such amounts exceed prescribed limits; companies face an aggregate cap for directors, substantial-interest persons and their relatives; specified travel, passage and certain section 36 payments are excluded; exemptions apply for employment abroad, particular section 10 exempt employees, and low-salary employees; definitional adjustments of 'salary' and 'perquisite' govern application. A separate rule disallows excess fees paid to recent former employees within twenty-four months, subject to a monetary ceiling.
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Deduction limits for employer-provided salary-related expenditures restricted, with excess disallowed and specified caps and exemptions under amended Section 40A.
New subsection bars deduction for expenditure that results in payment of salary or provision of perquisites to employees or former employees when such amounts exceed prescribed limits; companies face an aggregate cap for directors, substantial-interest persons and their relatives; specified travel, passage and certain section 36 payments are excluded; exemptions apply for employment abroad, particular section 10 exempt employees, and low-salary employees; definitional adjustments of "salary" and "perquisite" govern application. A separate rule disallows excess fees paid to recent former employees within twenty-four months, subject to a monetary ceiling.
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