30 July Taxation - Salary

TAXATION AFTERSCHOOOL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL

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TAXATION Dr. T.K. Jain. AFTERSCHOOOL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk www.afterschoool.tk www.afterschoool.tk

AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

SALARY?  Sec

17 (1)  Includes wages, gratuity, fees, comission, bonus, leave encashment etc.  Sec 15 – salary is chargeable – when become due / when paid (whichever is earlier).

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

If I work in India, but my salary is paid in USA, where does it become taxable?  India.

(where it is deemed to arise – it doenst matter where it is paid).

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I work in a company. Instead of salary, I take share in profit. Will it be taxable as salary?  Yes

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I have received some money under keyman insurance policy scheme, is it a salary?  Yes

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I receive Rs. 200000 from unrecognised provident fund, out of this 80000 is the share of employer’s contribution. What is charged to my salary?  Rs.

80000.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

If I take loan against salary, will it be taxable?  No.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My salary is outstanding for 6 months. I have not received salary, still should I pay tax on that?  Yes

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I receive Rs. 5 lakh as salary from the UN. Is it taxable?  No.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

The company has provided me a rend free furnished house. It is taxable?  Yes

under salary

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Our MP lives in a big house provided by govt. is it taxable?  No

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

The judges of the supreme court live in luxurious houses, are these taxable?  No.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My company has provided me telephone at my home, it is taxable?  No.

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My company has sold goods to me at concessional rate (instead of Rs. 100, the company is charging Rs. 30). Is it taxable benefit?  no

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My company has provided me Car facility, which take me to office. Is it taxable?  No

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

The company gives subsidised lunch facility to me. Is it taxable?  No.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

The company has given me facility to travel at any place once in 4 years, is it taxable?  No

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Who is an special employee? 

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An employee who has 20% or more voting right A director of the company A person who takes more than Rs. 50000 as salary (this 50000 includes DA, Commission, other taxable allowances, but doesnot include non-monetary benefits, and monetary benefits exempt under section 10).

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

How will you charge tax on unfurnished house provided by my company. I am working in private sector?  

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If the house is owned by the company: A. 20% of salary (if the city has population over 4 lakhs) 0r B. 15% of salary (in other cities) If the house has been taken onlease : A. actual lease amount Or B. 20% of salary ( (which ever is lower)

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My campany gave me a laptop for use of office work. The value of laptop is Rs. 3 lakhs. What is the amount taxable?  Nil

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My company gives me gift of Rs. 15000 on my birthday. What is the taxable amount?  Nil

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I live in Delhi, my company has provided me with a rent free unfurnished house. The house is owned by the company. My salary is Rs. 2.5 lakhs per annum. What is the taxable amount?  It

is 20% of salary = 50000. answer.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

The government has decided to give all its staff members a increased DA of Rs. 50000 in March 2008. however, payment is made in April 2008. When will it become taxable?  It

will be taxable in 2007-2008 answer.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

My company purchased a car in Rs. 3.5 lakh in April 2005. but my company gave me this car for only Rs. 1.5 lakhs on August 2007. How much money is taxable? 

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First we have to deduct depreciation from the value of car. We will charge depreciation for 2 complete years @ 20% reducing balance method. Thus 3.5 lakh *.8 *.8 = 2.24 lakh Taxable value is 2.24 – 1.5 = .74 Or 74000 Rs. Answer.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I am a specified employee of a company, the company has spent Rs. 50000 on electricity expenses of my house. What is taxable amount? 

nil

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I have retired from private sector and have taken earned leave of Rs. 6 lakhs. My averarage salary during last 10 months has been Rs. 50000. what is tax exemption to me?  Had

I been govt employee – it would have been tax free (sounds absurd).  Exemptions are: (least of the following)  Rs. 3 lakhs, or Rs 6 lakhs ( actually received) or 10 month salary (Rs. 500000)  Thus only Rs. 3 lakh is tax exempt. www.afterschoool.tk

AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

I receive HRA of Rs. 30000. My salary is Rs. 300000. What examptions can I get, if I live in Bikaner? I live in my house.  Exemptions

are: HRA or Rent paid -10% of salary or 40% of salary (minimum of these)  HRA actually received is Rs. 30000, since I have not paid rent, so this limit is nil, and 40% of salary is Rs. 120000. thus Nil is tax exempt www.afterschoool.tk

AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

ABO UT A FTERSCH OOO L Afterschoool conducts three year integrated PGPSE (after class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Why such a programme? 

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To promote people to take up entrepreneurship and help develop the society To enable people to take up franchising and other such options to start a business / social development project To enable people to take up social development as their mission To enable people to promote spirituality and positive thinking in the world

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Who are our supporters?  Afterschoolians,

our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us.  You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

About AFTERSCHOOOL PGPSE – the best programme for developing great entrepreneurs     

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Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just an employee Option to take up part time job – so earn while you learn The only absolutely free course on internet

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Workshops from AFTERSCHOOOL         

IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management, Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad

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Flexible Specialisations:          

Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social relevance

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Salient features: The only programme of its kind (in the whole world)  No publicity and low profile course  For those who want to achieve success in life – not just a degree  Indepth knowledge and expertise  Professional approac: World class approach  Strong intellectual and business capabilities  Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes  Scholarships for those from poor economic background  Latest and constantly changing curriculum – keeping pace with the time  Placement for those who are interested  Admissions open throughout the year  Latest and most advanced technologies, books and study www.afterschoool.tk AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS material 

Components              

Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development Essential softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Pedagogy          

Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits Presentations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Branches  AFTERSCHOOOL

will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Case Studies  We

want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

Basic values at afterschoool        

Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where? Embrace change – and compete with yourself only

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

www.afterschoool.tk social entrepreneurship for better society

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AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS