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Work Related Deductions Under Income Assessment Tax Act

   

Added on  2021-02-19

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Table of ContentsMAIN BODY.......................................................................................................................................3REFERENCES.....................................................................................................................................9
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MAIN BODYQuestion 1 Definition of work related deductions under Income Assessment TaxUnder Income Tax Assessment Act, deductions which are allowable by act or whichcan be availed by the firms after the completion of tax returns are known as work relateddeductions. Some expenses can be availed by the firms if the expenses are related to the earnings ofbusiness, expenses are properly recorded in the business (James, 2016). Few examples of allowablework related deductions which are related to the business are-Vehicle & Travelling expenses which are been used at the time of office work;Clothing or laundry expenses purchased for the office;Tools, equipments and other items purchased for business.Three deductions which cannot be claimed by the company are-Entertainment expenses cannot be claimed by the company;company cannot claim the expenses incurred on the private or domestic expenses of ownersof the company;Expenses which are related to non- assessable income such as earnings from hobby cannotbe claimed by the company.Question 2 Definition of work- related allowances and their examples under Income TaxAssessmentWork- related allowances are those which are paid by the employer of the company to theemployee of the company over and above the basic salary. These are known as employeeallowances (Edwards, 2016). Some allowances are taxable and some are tax free. The few examplesof work related allowances are-Travel allowances are the allowances given to employees in order to cover the expensesincurred at the time of travelling from home to office or other travelling related to otherbusiness work;Accommodation allowances are generally tax free allowance provided to employees in orderto attend the business meetings or training programmes;Meal allowances are tax- free allowances which are given to employees who are leavingfrom their homes. Clothing allowances are given to cover the cost of uniforms. Question 3 Arrangement for General Interest charge and types of taxes which can be levied onGeneral Interest ChargeGeneral Interest Charge are levied on the unpaid tax liabilities when the tax estimatedamount or incorrectly varied amount have excessive difference. Other case in which interest ischarged when amount of tax, charge or penalty are unpaid or paid late. Twp types of taxes on which
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