MANAGEMENT

Detailed explanation-1: -When a bonus is declared by the employer, it is considered taxable in the financial year in which it is declared even though you might receive it in the next financial year.

Detailed explanation-2: -The taxable category of perquisites includes – supply of water, electricity and gas, rent-free accommodation, professional tax, the salary of domestic help hired by the employee, medical expense reimbursements, etc. Further, other fringe benefits like free meals, club and gym facilities and gifts worth more than Rs.

Detailed explanation-3: -Other Tax Free Allowances – Daily Allowance, Academic / Research Allowance, Conveyance allowance, Allowances paid to government employee posted outside India, Compensatory Allowances paid to Judges, and Travelling Allowance, and so on.