Hello friends Can someone clarify about the Component called "Soft furnishing allowance" in the Break-up of a Salary......... Regards Arpita
From India, Bangalore
2From India, Bangalore
Dear Arpita,
Earlier Companies used to pay part of the salary in the form of soft furnishing allowance to enable its executives to purchase soft furnishings like pillow covers, curtains etc. But now it has been made taxable therfore nobody is giving this allowance. If some companies are doing it,they should stop doing it because if they pay it and do not deduct tax on it, they shall have to pay 33% of paid amount as Fringe Benefit Tax which will be equal to or more than the tax saved by the employee. Therfore why continue with this allowance.
KKT
From India, Delhi
Earlier Companies used to pay part of the salary in the form of soft furnishing allowance to enable its executives to purchase soft furnishings like pillow covers, curtains etc. But now it has been made taxable therfore nobody is giving this allowance. If some companies are doing it,they should stop doing it because if they pay it and do not deduct tax on it, they shall have to pay 33% of paid amount as Fringe Benefit Tax which will be equal to or more than the tax saved by the employee. Therfore why continue with this allowance.
KKT
From India, Delhi
Thanks KKT for the response ........this site is simply awesome....mean to say..i get apt and concise answers for my queries which is not possible from even google ......
Keep rocking...
Regards
Arpita
From India, Bangalore
Keep rocking...
Regards
Arpita
From India, Bangalore
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Maharashtra Special allowance Notification July 14 to Dec 14.pdf