a)concealment of income b)inflation of expensesc)falsification of accountsd)violation of rulesthese devices are unethical. Evasion, once proved, not only attractsheavy penalties but may also lead to prosecution.
Gratuity actual received = 3,25,000 RSMaximum limit = 3,50,000 RS He is covered under the gratuity act. For this calculation is asfollows:15/26*13000*29 = 2,17,500 RSTAXABLE GRATUITY= 3,25,000 – 2,17,500= 1,07,500
a) If he is in receipt of gratuityTAXABLE COMMUTED PENSION= Commuted pension – 1/3Of commuted pension= 1,60,000 – 53,333.33= 1,06,666.67 RS b) If he not in receipt of gratuityTAXABLE COMMUTED PENSION= Commuted pension – 1/2Of commuted pension= 1,60,000 – 80,000= 80,000 RS
The term perquisites means any benefit, attachedto an office or position in addition to salary or wages. It may be given incash or in kind. If it is given in kind it is measured in terms of money andadded to find out employee’s salary for tax purpose. The perquisites aretaxable under the head salary only if they are (a) allowed by an employer toan employee(b) allowed during the continuance of employment(c) directly dependent on service