Income Tax Query

POSTED BY Vimal P N ON March 5, 2013 12:43 pm COMMENTS (6)

Dear All,

This query is regarding my tax liability on some of the amount which I recieved in the current financial year other than salary. Apart from my salary credited every month, following are the major amounts credited to my account in the current financial year.

Rs 40000 – As reimbursement from my company for my expenses during an overseas official trip. About 30000 is perdiem allovance and the remaining is against bills.
Rs110000 – As housing loan from company. I repay this loan from my salary in 24 equal installments.
Rs30000 – Provided by parents.

I got to know from the discussions here that the amount provided by parents are completely tax free and a gift deed will be all that is needed as proof. I would like to know the tax implications on the other two credits to my account.

6 replies on this article “Income Tax Query”

  1. Dear Vimal, the interest paid to your employer is deductible from your salary under sectgion 24(b). Regarding keeping regards, for the foreign trips, I assume you do have copies of the biils produced to your company. For home loan, there is already written documentation with your employer so no need.

    Regarding parental amount, you should prepare a gift deed, in case you do not wish to return the amount. In case you want to return the amount, no need of gift deed also.

    Thanks

    Ashal

    1. Vimal P N says:

      Thank you for the clarifications Ashal

  2. Dear Vimal, the home loan amount is also a capital receipt so it’s again tax free.

    Thanks

    Ashal

    1. Vimal P N says:

      Thank you Ashal.
      Can I deduct the interest paid from my taxable income for the year?
      Also do I need to keep some kind of proof for all these amounts for a possible scrutiny in the future?

  3. Dear Vimal, the 40K Rs. is the reimbursement amount to wards your actual travel, hence this is tax free. The housing loan is also tax free. If you are paying any interest to your employer, please inform us the ROI charged by your employer. the Parental money is also tax free.

    Thanks

    Ashal

    1. Vimal P N says:

      Thank you Ashal.
      I paid an amount of 2200 as interest on the housing loan.
      Company deducted it upfront at the time of payment.

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