Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: empanelment :: cpt :: list of goods taxed at 4% :: form 3cd
 
 
From the Courts »
 M/S TEJ QUEBCOR PRINTING LTD. Vs. JOINT COMMISSIONER OF INCOME TAX
 Principal Commissioner Of Income Tax (Central) Vs. M/s A2z Maintenance & Engineering Services Ltd.
 Pr. Commissioner Of Income Tax-19 Vs. Shri Neeraj Jindal
 Rollatainers Ltd. Vs. Commissioner Of Income Tax
 CIT vs. G K K Capital Markets (P) Limited (Calcutta High Court)
 CIT vs. Arpit Land Pvt. Ltd (Bombay High Court)
 CIT vs. Abacus Distribution Systems (India) Pvt. Ltd (Bombay High Court)
  ACIT vs. Mahesh K. Shah (ITAT Mumbai)
  Malay N. Sanghvi vs. ITO (Bombay High Court)
 Pr. Commissioner Of Income Tax-Xviii Vs. Praveen Saxena
 Unitech Hospitality Services Limited Vs. Assistant Commissioner Of Income Tax

Tax paid by employer on behalf of staff is exempt from taxation: High Court
August, 23rd 2012

Tax paid by an employer on behalf of employees is a non-monetary remuneration and therefore exempt from tax, according to an Uttarakhand High Court order. The income-tax department had held that employees are obliged to pay tax on the tax paid by their employers on their behalf. The high court delivered this verdict on July 30 on an appeal filed by the Director, International Taxation, New Delhi against Triton Holding, R&B Falcon, Sedco Forex International Drilling, Transocean Offshore International Ventures and Transocean Discoverer and Others, BG International.

The court pointed out that Section 17 (2) of the Income-tax Act, among other things, exempts "any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee" . The tax paid by the employer on behalf of the employee is among the pre-requisites mentioned under this section such as rent-free accommodation, amenities granted free of cost, sum payable by the employer to Provident Fund, etc, the high court pointed out. On many occasions, employers agree to pay income tax on behalf of the employees .

The issue before the court was whether the tax paid by the employer on behalf of employees would be exempt from taxation as such payments are non-monetary benefits to the employees as classified under section 10 (10CC) of the Income-tax Act. The High Court explained that Section 10 (10CC) of the Income-tax Act stipulates that such payment shall be excluded from the income of the employees computed for the purpose of taxation. The High Court also pointed out that payment of tax by the employer to the Income-tax department on account of their employees is non-monetary payment to employees and can be classified as remuneration mentioned under clause (2) of section 17 of the Income-tax Act.


 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions