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Mihir Tanna |1054 Answers |Ask -Follow

Tax Expert - Answered on Mar 13, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Asked by Anonymous - Mar 06, 2023Hindi

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Dear Mihir, My income is 13.66 lac per annum. My company has been deducting TDS to an extent of 2 lac . I fail to understand the reason. My house rent & electricity bill is getting paid by the company. House rent is shown as rent allowance in the pay slip & electricity bill is paid upon furnishing the bill every month. They say that these are perquisites and are taxable. I have not been told before about the same. Please guide me. This is what they are showing...Please help me in saving this tax...I am clue less about this. Please find your Tax Calculation Sheet below. Income Tax Computations With Rent/Without Perquisites With out Rent/With Perquisites Gross Salary (includes Employer contribution to NPS **) 1415198 1320496 Exemptions U/s 10 House Rent Allowance 101999 0 Gross Salary after Section 10 Exemptions 1313199 1320496 Deduction U/s 16 Standard Deduction (Sec 16 ia) 50000 50000 Professional Tax (Sec 16 iii) 2400 2400 Gross Total Income 1260799 1268096 Deductions under chapter VI-A Investments ( Sec 80C) 150000 150000 Contribution to NPS (Sec 80CCD (1b) 10000 10000 Medical Insurance Premium (Sec 80D) 15000 15000 Total 175000 175000 Net taxable income 1085800 1093100 Tax on Total Income ( as per applicable slabs) Income Liable to Tax at Normal Rate 138240 140429 Short Term Capital Gains (Charged @ 15%) 0 0 Long Term Capital Gains (Charged @ 20%) 0 0 Long Term Capital Gains (Charged @ 10%) 0 0 Winnings from Lottery (Charged @ 30%) 0 0 Total Tax Due 138240 140429 Surcharge on Tax 0 0 Education Cess @4% 5530 5617 Total Tax Due 143770 146046 Less Tax Deducted Till Date- Employer 51000 51000 Other TDS deduction 0 0 Balance Tax to be deducted 92770 95046 Remaining months in the Year 2 2 Tax Per Month 46385 47523 Old Regime Old Regime

Ans: If rent and electricity is paid by the company, it is considered as perquisites. To save tax, you can invest additional 40k in NPS, you can pay additional mediclaim premium.

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