Practice question
An employee earns only compensation from an employer-employee relationship and claims OSD against that salary. No business or professional income is involved. Which rule applies?
- Section34 deductions, including OSD, are not allowed against that compensation income
- Every salary automatically receives40% OSD
- OSD is a mandatory salary credit
- Only the salary bank account location matters
- The employer can waive the statutory limitation privately
Legal references
- RA10963 TRAIN: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html Section11, opening Section34 compensation exclusion and OSD provision.
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