Dear Senior’s
If xyz organization has reward system in monthly salary, means if any employee doesn't took any leave in that particular month then he will get one day salary as reward. But the thing is this reward is not fixed which is depending upon presence of that particular employee in that month. So as per income tax act this amount of leave award is exempted from salary income tax or not?
Thanks
From India, Pune
1If xyz organization has reward system in monthly salary, means if any employee doesn't took any leave in that particular month then he will get one day salary as reward. But the thing is this reward is not fixed which is depending upon presence of that particular employee in that month. So as per income tax act this amount of leave award is exempted from salary income tax or not?
Thanks
From India, Pune
Mahesh, this is definetely not exempted from income tax. Attendance rewards are fully taxable under IT laws. From salary income, only a few components are exempted, which are given in section 80 (c) to 80 (u), sec 24 (housing loan), section 16, etc.of IT Act 1961.
From India, Mumbai
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Hello Seniors.doc