Perquisites

1.  Perquisites [(Section 17(2)]-Definition 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 accommodation provided to the assessee …

Perquisites [(Section 17(2)]- Income under the head Salaries Read More »

Accommodation provided to the employee may be— (i)      unfurnished (ii)     furnished Further, such accommodation may be provided: (a)      rent free; or (h)     at concessional rate. As per amended rule 3(1), the valuation of accommodation should be done as under: (A)      Accommodation provided by the Government to its employees Where the …

Perquisites- Rent Free Accommodation or Accommodation provided at Concessional Rate Read More »

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 …

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

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, …

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

1.  Provision by the employer of services of a Sweeper, a Gardener, a Watchman or Personal Attendant [Rule 3(3)] The value shall be the actual cost to the employer i.e. the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any …

Valuation of Various Perquisites – for Calculating Salary Income Read More »

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 …

Valuation of PERQUISITES- for Calculating Taxable Salary Income Read More »