Tax Mohalla - Tax by KK

Question Whether tips distributed to employees charged under the head salary and consequently whether tax is required to be deducted under section 192? Answer ITC Ltd v. CIT , the Delhi High Court (HC) held that the tips or service charges distributed to employees are to be treated as part of salary and tax is required to be withheld under section 192 of the Income-tax Act from the same.

Question Whether expenditure on foreign education of director’s son deductible. Answer Prima facie expenses are not deductible since personal expenses. But if it is proved that this expenses is incurred wholly and exclusively for the purpose of business then it is allowed as deduction under section 37.