TAXATION

AFTERSCHOOOL – DEVELOPING CHANGE

MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 TAXATION
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
www.afterschoool.tk

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SALARY?
 Sec 17 (1)
 Includes wages, gratuity, fees,
comission, bonus, leave encashment
etc.
 Sec 15 – salary is chargeable – when
become due / when paid (whichever is
earlier).

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If I work in India, but my salary is
paid in USA, where does it become
taxable?
 India.(where it is deemed to arise – it
doenst matter where it is paid).

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I work in a company. Instead of
salary, I take share in profit. Will it
be taxable as salary?
 Yes

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I have received some money under
keyman insurance policy scheme, is
it a salary?
 Yes

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 I receive Rs. 200000 from
unrecognised provident fund, out of
this 80000 is the share of employer’s
contribution. What is charged to my
salary?

 Rs. 80000.

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If I take loan against salary, will
it be taxable?
 No.

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My salary is outstanding for 6
months. I have not received salary,
still should I pay tax on that?
 Yes

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I receive Rs. 5 lakh as salary
from the UN. Is it taxable?
 No.

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The company has provided me a
rend free furnished house. It is
taxable?
 Yes under salary

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Our MP lives in a big house
provided by govt. is it taxable?
 No

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The judges of the supreme court live
in luxurious houses, are these
taxable?
 No.

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My company has provided me
telephone at my home, it is taxable?
 No.

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My company has sold goods to me at
concessional rate (instead of Rs.
100, the company is charging Rs.
30). Is it taxable benefit?
 no

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My company has provided me Car
facility, which take me to office. Is it
taxable?
 No

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The company gives subsidised lunch
facility to me. Is it taxable?
 No.

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The company has given me facility
to travel at any place once in 4
years, is it taxable?
 No

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Who is an special employee?
 An employee who has 20% or more voting
right
 A director of the company
 A person who takes more than Rs. 50000 as
salary (this 50000 includes DA,
Commission, other taxable allowances, but
doesnot include non-monetary benefits,
and monetary benefits exempt under
section 10).

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How will you charge tax on
unfurnished house provided by my
company. I am working in private
sector?
 If the house is owned by the company:
 A. 20% of salary (if the city has population
over 4 lakhs)
 0r
 B. 15% of salary (in other cities)
 If the house has been taken onlease :
 A. actual lease amount
 Or B. 20% of salary ( (which ever is lower)

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My campany gave me a laptop for
use of office work. The value of
laptop is Rs. 3 lakhs. What is the
amount taxable?
 Nil

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My company gives me gift of Rs.
15000 on my birthday. What is the
taxable amount?
 Nil

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 I live in Delhi, my company has
provided me with a rent free
unfurnished house. The house is
owned by the company. My salary is
Rs. 2.5 lakhs per annum. What is the
taxable amount?
 It is 20% of salary = 50000. answer.

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 The government has decided to give
all its staff members a increased DA
of Rs. 50000 in March 2008.
however, payment is made in April
2008. When will it become taxable?

 It will be taxable in 2007-2008 answer.

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 My company purchased a car in Rs.
3.5 lakh in April 2005. but my
company gave me this car for only
Rs. 1.5 lakhs on August 2007. How
much money is taxable?

 First we have to deduct depreciation from the

value of car. We will charge depreciation for 2
complete years @ 20% reducing balance method.
Thus 3.5 lakh *.8 *.8 = 2.24 lakh
 Taxable value is 2.24 – 1.5 = .74
 Or 74000 Rs. Answer.

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I am a specified employee of a
company, the company has spent
Rs. 50000 on electricity expenses of
my house. What is taxable amount?
 nil

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 I have retired from private sector
and have taken earned leave of Rs. 6
lakhs. My averarage salary during
last 10 months has been Rs. 50000.
what is tax exemption to me?

 Had I been govt employee – it would

have been tax free (sounds absurd).
 Exemptions are: (least of the following)

 Rs. 3 lakhs, or Rs 6 lakhs ( actually

received) or 10 month salary (Rs.
500000)
 Thus only Rs. 3 lakh is tax exempt.
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I receive HRA of Rs. 30000. My
salary is Rs. 300000. What
examptions can I get, if I live in
Bikaner? I live in my house.
 Exemptions are: HRA or Rent paid -10%
of salary or 40% of salary (minimum of
these)
 HRA actually received is Rs. 30000,
since I have not paid rent, so this limit is
nil, and 40% of salary is Rs. 120000.
thus Nil is tax exempt

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 ABO UT A FTERSCH OOO L
Afterschoool conducts three year integrated PGPSE (after
class 12th along with IAS / CA / CS) and 18 month PGPSE
(Post Graduate Programme in Social Entrepreneurship)
along with preparation for CS / CFP / CFA /CMA / FRM. This
course is also available online also. It also conducts
workshops on social entrepreneurship in schools and
colleges all over India – start social entrepreneurship club in
your institution today with the help from afterschoool and help
us in developing society.

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Why such a programme?
 To promote people to take up entrepreneurship
and help develop the society
 To enable people to take up franchising and
other such options to start a business / social
development project
 To enable people to take up social
development as their mission
 To enable people to promote spirituality and
positive thinking in the world

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Who are our supporters?
 Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
 You can also support us – not
necessarily by money – but by being
promotor of our concept and our ideas.

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About AFTERSCHOOOL PGPSE – the best
programme for developing great entrepreneurs

 Most flexible, adaptive but rigorous programme

 Available in distance learning mode
 Case study focused- latest cases
 Industry oriented practical curriculum
 Designed to make you entrepreneurs – not just
an employee
 Option to take up part time job – so earn while
you learn
 The only absolutely free course on internet
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Workshops from
AFTERSCHOOOL
 IIF, Delhi
 CIPS, Jaipur
 ICSI Hyderabad Branch
 Gyan Vihar, Jaipur
 Apex Institute of Management, Jaipur
 Aravali Institute of Management, Jodhpur
 Xavier Institute of Management,
Bhubaneshwar
 Pacific Institute, Udaipur
 Engineering College, Hyderabad

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Flexible Specialisations:
 Spiritualising business and society
 Rural development and transformation
 HRD and Education, Social Development
 NGO and voluntary work
 Investment analysis,microfinance and inclusion
 Retail sector, BPO, KPO
 Accounting & Information system (with CA / CS /CMA)
 Hospital management and Health care
 Hospitality sector and culture and heritage
 Other sectors of high growth, high technology and social
relevance

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Salient features:
 The only programme of its kind (in the whole world)
 No publicity and low profile course
 For those who want to achieve success in life – not just a
degree
 Indepth knowledge and expertise
 Professional approac: World class approach
 Strong intellectual and business capabilities
 Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
 Scholarships for those from poor economic background
 Latest and constantly changing curriculum – keeping pace
with the time
 Placement for those who are interested
 Admissions open throughout the year
 Latest and most advanced technologies, books and study
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material
Components
 Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
 Meditation, spiritualisation, and self development
 Essential softwares for business
 Business plan, Research projects
 Participation in conferences / seminars
 Workshops on leadership, team building etc.
 Written submissions of research projects/articles / papers
 Interview of entrepreneurs, writing biographies of entrepreneurs
 Editing of journals / newsletters
 Consultancy / research projects
 Assignments, communication skill workshops
 Participation in conferences and seminars
 Group discussions, mock interviews, self development diaryng
 Mind Power Training & writing workshop (by Dr. T.K.Jain)

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Pedagogy
 Case analysis,
 Articles from Harvard Business Review
 Quiz, seminars, workshops, games,
 Visits to entrepreneurs and industrial visits
 Presentations, Latest audio-visuals
 Group discussions and group projects
 Periodic self assessment
 Mentoring and counselling
 Study exchange programme (with institutions out of India)
 Rural development / Social welfare projects

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Branches
 AFTERSCHOOOL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these
branches – and for promoting social
entrepreneurs.

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Case Studies
 We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us
to be in touch with entrepreneurs, so that
we may develop entrepreneurs.

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Basic values at afterschoool
 Share to learn more
 Interact to develop yourself
 Fear is your worst enemy
 Make mistakes to learn
 Study & discuss in a group
 Criticism is the healthy route to mutual support
and help
 Ask fundamental questions : why, when, how
& where?
 Embrace change – and compete with yourself
only
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www.afterschoool.tk
social entrepreneurship for better
society

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