09-20-2010, 07:16 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Safoora</i>
<br />tax ka paper honay wala hay.. and i hav the following queries!!
plzz koi me ki help ker de!!
1. Mr.X is a salaried Person and he is provided with a medical allowance of Rs. 10000/month
besides this he is also entitled to free medical treatment approved hospitals..
Mr. X ko 10% of basic salary ki exemption milegi for the medical allowance?
2. Mr Z has suffered a loss in business.. is liye in pe minimum taxation apply kerengay.. so if Mr Z ne koi advacne tax pay kia hua hay ya tax deduction at source hui hay usko adjust kersaktay hain kia with tax amount payable under minimum taxation?
3.agar recognized provident fund pe interest is exempt higher of 1/3 of the salary or 16 % of what?
4. MR A is constructing his house and for that purpose he intends to take a personal loan.. can this loan be included in his taxable income? under wat circumstances?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Safoora,
Please note the following, respective to your queries.
1- Mr. X will be provided maximum exemption of 10% of his basic salary, be it in the form of reimbursement or through medical allowance.
If he has taken his medical allowance as exempted upto 10% of his basic salary then he will have to clubbed medical reimbursement in his total income to arrive at the taxable income.
2- Mr. Z will be allowed a tax credit in respect of those taxes which have been deducted at source, provided that his annual turnover exceeds Fifty Million in the tax year 2009 or in any subsequent tax year.
3- 16% of interest calculated.
Lets assume that interest has been calculated and credited at 20% then we will be required to ascertain whether 16% interest is higher or 1/3 of annual basic salary( higher of the two will be exempted).
4- Loan will not, in any case, be included in his taxable income, however, remember the following two important abstracts of the ITO 2001;
------------Interest calculated at the Benchmark rate (If the loan is tax free or at the rate lower than benchmark rate) will be included in the taxable income of the employee.
------------Tax credit will be given if the loan has been sanctioned by approved institutions for the purpose of construction of House.
If you need any section reference or detail, then let me know!
Best Regards,
Faisal.
<br />tax ka paper honay wala hay.. and i hav the following queries!!
plzz koi me ki help ker de!!
1. Mr.X is a salaried Person and he is provided with a medical allowance of Rs. 10000/month
besides this he is also entitled to free medical treatment approved hospitals..
Mr. X ko 10% of basic salary ki exemption milegi for the medical allowance?
2. Mr Z has suffered a loss in business.. is liye in pe minimum taxation apply kerengay.. so if Mr Z ne koi advacne tax pay kia hua hay ya tax deduction at source hui hay usko adjust kersaktay hain kia with tax amount payable under minimum taxation?
3.agar recognized provident fund pe interest is exempt higher of 1/3 of the salary or 16 % of what?
4. MR A is constructing his house and for that purpose he intends to take a personal loan.. can this loan be included in his taxable income? under wat circumstances?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Safoora,
Please note the following, respective to your queries.
1- Mr. X will be provided maximum exemption of 10% of his basic salary, be it in the form of reimbursement or through medical allowance.
If he has taken his medical allowance as exempted upto 10% of his basic salary then he will have to clubbed medical reimbursement in his total income to arrive at the taxable income.
2- Mr. Z will be allowed a tax credit in respect of those taxes which have been deducted at source, provided that his annual turnover exceeds Fifty Million in the tax year 2009 or in any subsequent tax year.
3- 16% of interest calculated.
Lets assume that interest has been calculated and credited at 20% then we will be required to ascertain whether 16% interest is higher or 1/3 of annual basic salary( higher of the two will be exempted).
4- Loan will not, in any case, be included in his taxable income, however, remember the following two important abstracts of the ITO 2001;
------------Interest calculated at the Benchmark rate (If the loan is tax free or at the rate lower than benchmark rate) will be included in the taxable income of the employee.
------------Tax credit will be given if the loan has been sanctioned by approved institutions for the purpose of construction of House.
If you need any section reference or detail, then let me know!
Best Regards,
Faisal.
