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Taxability Of Perquisites For Computing Salary Income

Ramasamy Ulaganathan
28/06/2017 0 0
 

Taxability Of Perquisites:

(A) Exempted for All Employees

(B) Taxable for All Employees

(C) Taxable for Specified Employees Only

1. Free medical facilities as given u/s 17(2) (Proviso) (see details on next pages).

2. Free refreshments during working hours.

3. Free recreational facilities.

4. Provision of telephone whether basic or cellular exclusively for official use.

5. Free meals provided in remote area or at offshore installation are fully exempted.

6. Free education, training or refresher course for employees.

7. Leave Travel Concession if given twice in a block of 4 years.

8. Free ration received by members of armed forces.

9. Perquisites allowed by Government to its employees posted abroad.

10. Rent free house given to an officer of Parliament, a Union Minister, and leader of Opposition in Parliament.

11. Free residence and Conveyance facilities to Judges of Supreme Court and High Court.

12. Free conveyance provided by employer to employee for going to or coming from place of employment.

13. Any amount contributed by employer towards pension or deferred annuity scheme.

14. Employer’s contribution to staff group insurance scheme.

15. Computers, laptops givn to [not transferred] an employee for official/personal use.

16. Transfer of a moveable asset [computer, car or electronic items] more than 10 years old without consideration.

17. Accident insurance premium paid by employer for his own benefit.

18. Interest free loan or loan at concessional rate of interest taken by employee from employer if amount of loan does not exceed Rs. 20,000 or loan is taken for medical treatment.

19. Value of any shares or debentures given free of cost or at concessional rate to employees under stock option scheme approved by the Central Govt.

20. Tax on perks paid by employer.

21. Rent free accommodation given in remote or offshore areas.

  1. Rent free house.
  2. Concessional Rent House.
  3. Obligation of employee met by employer.
  4. Any amount of life insurance premium paid by employer on the life of employee during the previous year.
  5. Value of specified security or sweat equity shares allotted or transferred.
  6. Contribution to approved superannuation fund of the employee in excess of Rs. 1,00,000.
  7. Other fringe benefits
  8. Interest free or concessional loan.
  9. Travelling, Touring, Accommodation.
  10.  Food or beverages facility.
  11. Gift or Voucher or Token facility.
  12. Credit card facility.
  13. Club facility.
  14.  Use of movable assets.
  15.  Transfer of movable assets.

 

  1. Car, or any other automotive conveyance.
  2. Services of domestic servants including sweeper, watch-man, gardner, personal attendent provided by employer.
  3. Gas, water and electricity facility.
  4. Education facility for children.
  5. Free transport allowed by employer engaged in transport business.

Categories & Types Of Perks

Perks can be divided into three categories:

  • Perks exempted for all employees
  • Perks taxable for all employees
  • Perks taxable only for specified employees.

 

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