Limit on allowance in respect of benefit, amenity or perquisite under clause (c)(iii)/clause (a)(v) - Reimbursement of certain expenses/pay-ments whether form part of perquisite to be restricted to one-fifth of salary https://www.taxtmi.com/circulars?id=4441 Section 40(c)(iii)/40(a)(v) limits employer deductions for expenditures that provide benefits, amenities or perquisites to employees to a capped portion of the employee's salary as defined in rule 2(h) of Part A of the Fourth Schedule. Reimbursements and provision of utilities, domestic help and similar benefits are perquisites within that cap. Bonuses and commissions are salary when payable under contractual, statutory or binding award obligations; gratuitous or discretionary payments are perquisites. Classification of commission depends on the facts and terms of service. en-us Wed, 29 Oct 1969 00:00:00 +0530 Sat, 09 Aug 2008 11:32:00 +0530 TaxTMI RSS Generator Limit on allowance in respect of benefit, amenity or perquisite under clause (c)(iii)/clause (a)(v) - Reimbursement of certain expenses/pay-ments whether form part of perquisite to be restricted to one-fifth of salary https://www.taxtmi.com/circulars?id=4441 Section 40(c)(iii)/40(a)(v) limits employer deductions for expenditures that provide benefits, amenities or perquisites to employees to a capped portion of the employee's salary as defined in rule 2(h) of Part A of the Fourth Schedule. Reimbursements and provision of utilities, domestic help and similar benefits are perquisites within that cap. Bonuses and commissions are salary when payable under contractual, statutory or binding award obligations; gratuitous or discretionary payments are perquisites. Classification of commission depends on the facts and terms of service. Circulars Income Tax Wed, 29 Oct 1969 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4441