Sometimes,employee says that he wants tax free salary of Rs 300000.

Employer pays tax on it of Rs 4000

Income from Salaries in this case will be

Tax free Saalry+Tax paid by employee

=300000+4000

=304000

Hence In case,employee is paid tax free salary,then tax paid on it will be deemed to be Income from Salaries

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.