Presented By:Rohit Singh Bhati

[M-42]

2 Factors are considered in case of remuneration planning :

1.One has to ensure that while calculating business income of the employer, remuneration paid to employee are fully deductable.2.One has to see that remuneration received by the employees is taxable in their hands at concessional rates.

Deduction of remuneration in hand of employer

1. Remuneration to employees engaged in carrying on scientific research.

2. Insurance premium on health of employees.3. Bonus & commission to employees.4. Employers contribution towards PF & Gratuity fund.5. Employees contribution to staff welfare scheme.6. Family Planning expenditure.7. Payment of salary, allowances, perquisites.8. Salary payable outside India.9. PF payment without tax deduction.10. Payment of salaries to relatives. 11. Payment of salaries exceeding 20000 Rs. In cash or bearer

cheque