September 2023

Perquisites – Fringe Benefits or Amenities which shall be Taxable Perquisite in the hands of All Employees

The rules for valuation of specified fringe benefits or amenities arc as under: 1.  Interest Free Or Concessional Loans [Rule 3(7)(i)] The value of the benefit resulting from loans made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall […]

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Perquisites – Valuation of Motor Car / Other Vehicles [Rule 3(2)]

As already discussed, motor car/other vehicles, provided by the employer, is a perquisite only for specified employees because it is a facility provided by the employer to the employees. On the other hand, if the car belongs to the employee and the expenses of running and maintenance of that car are met by the employer,

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Valuation of PERQUISITES- for Calculating Taxable Salary Income

1.  Perquisites [(Section 17(2)]- Income under the head Salaries Section 17(2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i)      the value of rent-free accommodation provided to the assessee by his employer; (ii)     the value of any concession in the matter of rent respecting any

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Valuation of Retirement Benefits – for Calculating Taxable Salary Income

1.  Gratuity Gratuity is a payment made by the employer to an employee in appreciation of the past services rendered by the employee. Gratuity can either be received by: (a)      the employee himself at the time of his retirement; or (b)     the legal heir on the event of the death of the employee.

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Tax Treatment of Provident Fund for Calculating Taxable Salary Income

Provident Fund Scheme is a welfare scheme for the benefit of the employees. Under this scheme, certain sum  is deducted by the employer from the employee’s salary as his contribution to the Provident Fund every month.  The employer also contributes a certain percentage of the salary of the employee to the provident fund. These  contributions

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[Section 89/Rule 21A]- Tax Relief when Salary is Paid in Arrears or in Advance

Cases or situations of Tax Relief under section Section 89/Rule 21A when Salary is Paid in Arrears or in Advance for calculating taxable salary income for assessment year 2022-23 & 2023-24. Where, by reason of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his having received

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Section 9: Incomes which Accrue or Arise in India or are Deemed to Accrue or Arise in India

Section 9, Income Accrue or Deemed to Accrue or Arise in India : Section 9 describes the Incomes which Accrue or Arise in India or are Deemed to Accrue or Arise in India for the purpose of computation of Taxable Income according to Residential Status of an Assessee as per Income Tax Act. (1) Accrue

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