Domestic servant allowance are taxed or not
Services of Domestic Servant: You can save tax on, salary you pay to domestic servant including sweeper, gardener or personal attendant. Taxable value of the perquisite is salary paid by the employer minus amount recovered from employee. It can help in tax savings towards salary of domestic servant. For example, if your servant’s salary is Rs 7,000 per month and your employer is recovering same amount from your salary. In this case, taxable value of the perquisite is NIL.