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Allowance are being mentioned in section 10 wheras perquisites in section 17(2) of Income Tax Act, 1961.

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Q: What is the difference between allowance and perquisites?
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What is the difference between allowances and salary?

an allowance is given a salary is earned


What is allowance for overvaluation?

the difference between Billed price and cost price is called allowance for overvaluation. head office sent goods to its branch always at billed price which is always exceed than to its cost price.


What is the difference between tax code 746L AND 747L?

My tax Code just changed from 746l to 738l . Looked into it and my personal tax allowance is 7475 (746l) and no because I have claimed for expense at work my personal allowance is now 7380 (738l) .


What is importance of pattern allowance?

pattern allowance is needed as it gives shrinkage allowance, machining allowance,draft allowance,shaking allowance and distortion allowance.


What is a trade in allowance?

Trade in allowance is the allowance provided by the vendors to the company when company sell the old asset and acquire the new same asset from vendor, trade-in allowance is the amount paid by vendor for the old asset if it is more than salvage value then it is gain otherwise loss on sale of asset.A trade-in allowance is the amount of money taken off the sale price in exchange for the item being traded in by the customer. It is most commonly seen in the automotive industry when a person trades in their old car to the dealer. The term "trade-in allowance" is used because it is different than the actual value of the item. For example, the new car has a retail price of $20,000, but the dealer would be willing to discount the vehicle and sell it for $19,000 cash. The old car has a wholesale value to the dealer of $8,000; but the dealer would offer a trade-in allowance of $9,000 off the full retail price of the new car. The difference between full retail and the trade-in allowance ($11,000) is the same as the difference between what the dealer is willing to take for the new car and what he is willing to pay for the trade-in (19 - 8 = 11). The actual values are used in the accounting entry. Here, the dealer records a $19,000 sale and a used car at a cost of $8,000.

Related questions

What is difference between allowance and perquisites receive by chairman or retired chairman which is exempted?

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Difference between perquisites and allowance related to income?

PERQUISITES are the non-cash benefits, which an employee receives from his employer during the course of employment. The main important difference between the allowance and the perquisites is that the allowance are received by the employee in his hands and then they are spent, where as in the case of perquisites the money is not received, it is only the advantage that is received. E.g. free car given to the employee for his personal as well as official use by the employer is an example of perquisite because the employee does not receive any money but he gets a non-monetary benefit of using the car.ALLOWANCE are the amounts given by the employer to the employee for carrying out the job responsibilities in an efficient manner. E.g. an airhostess is given a kit allowance and a wardrobe allowance so that she can carry out her duties properly and stay beautiful which is a requirement of her job. Similarly sales man is given a traveling allowance because it is the requirement of the job that he should travel extensively for procuring business.


What part of speech is perquisites?

Perquisites is a noun.


What is the difference between allowances and salary?

an allowance is given a salary is earned


What is the difference between allowance and tolerance in engineering graphics?

Tolerance is unintended deviance from basic size, while Allowance is intended.


What is the difference between the dole and job seekers allowence?

The dole is an alternative name for Jobseeker's Allowance.


Difference between operating weight and dry operating weight of an aircraft?

OEW = DOEW + Catering Allowance + Flight attendents


What is allowance for overvaluation?

the difference between Billed price and cost price is called allowance for overvaluation. head office sent goods to its branch always at billed price which is always exceed than to its cost price.


What is the difference between fringe benefit and perquisites?

The difference between a bonus and fringe benefits is that the fringe benefits are constant and a bonus is not. A bonus is usually paid out once a year based on work performance. A person can enjoy fringe benefits of working somewhere all the time, like a free health care plan.


What is the difference between exemption and withholding allowance?

An exemption basically is something you use to lower your taxes, or something you do not have to pay taxes on, such as a child or student loan interest. A withholding allowance is how much the employer withholds from your check in taxes after exemptions are calculated.


What is the difference between tax code 746L AND 747L?

My tax Code just changed from 746l to 738l . Looked into it and my personal tax allowance is 7475 (746l) and no because I have claimed for expense at work my personal allowance is now 7380 (738l) .


What is one difference between a Jobseeker allowance and Employment Support Allowance?

JSA is for people who are available for, capable and actively seeking work or working less than 16 hours per week. ESA is for people who are unable to work due to illness or disability.