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Perquisites - Overview - Salary Income - Income Tax

Perquisites - Overview
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SEC. 17(2) – PERQUISITE includes

  1. Accommodation provided to the employees by his employer at free of cost or at concessional rent – Value as per Rule 3(1)
  2. Value of any  benefit or amenity granted or provided free of cost or at concessional rate to SPECIFIED EMPLOYEES i.e.
  • Motor car                                                  Value as per Rule 3(2)
  • Sweeper, Gardener, Watchman etc.        Value as per Rule 3(3)
  • Gas, Electricity & Water                            Value as per Rule 3(4)
  • Free Education Facility                             Value as per Rule 3(5)
  • Free / Concessional Fare                         Value as per Rule 3(6)
  • Leave Travel Concession subject to exemption u/s 10(5)
  • But medical facilities provided are taxable as per proviso to sec. 17(2)

          Specified Employee means

  • A Director employee of a Company
  • An employee who has substantial Interest in the Company
  • An employee whose income under head Salaries exceeds 50,000 for the P/Y

       iii.  Any sum paid by the employer in respect of any obligation on behalf of the employee

       iv.  Sum payable by the employer to effect an assurance on the life of the employee or to effect a contract for an annuity

        v. The value of any specified security or sweat equity shares allotted or transferred, whether directly or indirectly, by the employer or former employer, Free of cost or at concessional rate to the assessee.

       vi. Any sum paid by the employer in discharging the monetary obligation of the employee which otherwise would have been payable by the employee

  1. the amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds 1,50,000 and
  2. the value of any other fringe benefit or amenity as may be prescribed
  • Concessional or Interest free Loan                                               As per Rule: 3(7)(i)
  • Travelling, touring & accommodation other than LTC                   As per Rule: 3(7)(ii)
  • Free food & beverages to the employees during office hours      As per Rule: 3(7)(iii)
  • Gift to the employees                                                                    As per Rule: 3(7)(iv)
  • Credit card expenses inc. membership fees & annual fees          As per Rule: 3(7)(v)
  • Expenditure on account of club expenses                                    As per Rule: 3(7)(vi)
  • Use of employer’s any movable asset by the employee               As per Rule: 3(7)(vii)
  • Transfer / Sale of any Movable Assets to employee                     As per Rule: 3(7)(viii)
  • Value of any other benefit or amenity, service, right                      As per Rule: 3(8)
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