Saturday 28 July 2018

ITAT : Allows Sec. 89 relief on arrears of superannuation fund contribution, ‘salary’ includes ‘perquisites’

Agra ITAT allows Sec. 89 relief to assessee-employee with respect to arrears received in lieu of employer's contribution to an approved superannuation fund [taxable as perquisite u/s. 17(2)(vii)] during AY 2014-15; Rejects Revenue’s stand that the payments made by employer was perquisites u/s. 17(2), which cannot qualify for relief u/s. 89(1) as it covers salary arrears and arrears for profit in lieu of salary u/s. 17(3) only; Observes that Sec. 17(1)(iv) defines ‘salary’ to inter alia include perquisites, hence relief u/s 89 is available qua perquisites also; Likewise, clarifies that though Rule 21A talks of income by ways of salary, it does pertain to perquisite as well:ITAT 

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P & H HC stays the operation of Circular clarifying taxability of corporate guarantee

  This Tax Alert summarizes a recent interim order [1] passed by the Punjab & Haryana High Court (HC) staying the effect and operation ...