02-23-2009, 07:16 PM
What I have undertood from above comments
The monthly amount which employer contribute to the employee salary is NOT taxable.
After completion of 3 years period, when the employee is eligible for the fund, the amount he will receive is TAXABLE ..
But what will be the tax rate?
This is what I have understood
If the Fund amount is 100,000/- and his previous annual salary on which tax was 300,000/-.
After GF, his annual taxable salary will become 400,000/-.
Is above the right procedure?
The monthly amount which employer contribute to the employee salary is NOT taxable.
After completion of 3 years period, when the employee is eligible for the fund, the amount he will receive is TAXABLE ..
But what will be the tax rate?
This is what I have understood
If the Fund amount is 100,000/- and his previous annual salary on which tax was 300,000/-.
After GF, his annual taxable salary will become 400,000/-.
Is above the right procedure?
