06-14-2004, 04:05 PM
A company paying perquisites to its employees would be allowed such expense for tax purposes only if it is 50% of salary.
My question is, a company, the income of which is exempt from Income Tax under 1st Part of 2nd Schedule of ITO, 2001, if that company pays "excess perquisite" (e.g., Basic Salary - Rs. 50,000, HRA - Rs. 45,000) to its employees, what are the implications?
Mustafa
My question is, a company, the income of which is exempt from Income Tax under 1st Part of 2nd Schedule of ITO, 2001, if that company pays "excess perquisite" (e.g., Basic Salary - Rs. 50,000, HRA - Rs. 45,000) to its employees, what are the implications?
Mustafa
