What is Perquisites And its Taxability
TAXABILITY OF PERQUISITES
Ø Meaning of Perquisite:
In simple words,
perquisites are the benefits or facilities provided
by an employer to his employee in addition to the
normal salary.
Ø List of Perquisites:
A.
CATEGORY 1 - PERQUISITES TAXABLE U/5 17(2):
Ø Rent free accommodation- Section 17(2)(i) &
Rule 3(1)
Ø Accommodation at concessional rent- Section 17(2)(ii) & Rule 3(1)
Ø Perquisites taxable in case of .specified employees only- Section 17(2)(iii) & Rules 3(2) to 3(6)
Ø Any obligation of the employee discharged/met, by the employer- Section 17(2)(iv)
Ø Payment of life
insurance premium by the employer
on behalf of the employee
- Section 17(2)(v)
Ø
Specified securities or sweat equity
shares allotted/transferred by the employer
to his employees free of cost
or at concessional rates - Section 17(2)(vi)
Ø Employer's contribution to approved superannuation fund- Section 17(2)(vii)
Ø Any other fringe benefit- Section 17(2)(viii) & Rule 3(7)
A. CATEGORY 2 - OTHER PERQUISITES:
Ø Medical facility - Proviso to Section 17(2)
Ø Leave Travel Concession (LTC)/Leave Travel Assistance (LTA) - Section
10(5) & Rule
2B
RENT FREE ACCOMMODATION -
{Section 17(2)(i): Rule 3(1))
In Case of Government Employees
In case of rent-free accommodation provided by the Central Government or the State
Government to its employees,
perquisite value
shall be the license fee determined as per the rules framed
by the Government in this regard.
In Case of Non-Government Employees
Case 1- Accommodation is NOT OWNED by the Employer :
In case of accommodation taken on rent by the employer and given to the employee
free of rent, the taxable
value of perquisite shall be least
of the following:
• 15% of RFA salary
• Rent charges paid/payable by the employer
Case
2 – Accommodation is OWNED by the Employer :
•
In case of accommodation owned by the employer and given to the employee free of rent,
the taxable value
of perquisite
shall be as follows:
Note: Meaning
of RFA Salary:
|
RFA Salary Includes |
RFA Salary Excludes |
|
•
Basic Pay; •
Dearness Allowance/Pay (only to the
extent it forms part of salary
for retirements benefits); •
Taxable portion of all
Allowances; • Bonus/Commission/Fees, etc; •
Leave Salary received by the
employee during his employment. |
•
Taxable portion
of all Perquisites (whether monetary or non-monetary) •
Any payment at
the time of retirement or after retirement. Examples: Gratuity, commuted pension, provident fund, etc •
Arrears of salary; •
Advance salary. |
Demo Classes of Tax by Prof. Vinit Sir: https://www.conceptonlineclasses.com/demovideos
Visit Website: https://www.conceptonlineclasses.com/
#WhatisPerquisitesAnditsTaxability
.png)
.png)
Salary of a Qualified CMA
Salary of a Qualified CMA
Best Career Option After Class 12th
Best Career Option After Class 12th
.png)
Why to choose career in "CMA" ?
The Reasons to Choose a Career in "CMA"
.jpg)
What Is Balance ScoreCard
What Is Balance ScoreCard A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations. #BalanceScoreCard
Top Reviews
Introduction to Statistics for CA Foundation
Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics
.jpg)
Chapter X of Companies Act 2013
Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013
.jpg)
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448
.jpg)
What is Corporate Image
What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage
.jpg)
What is Energy Audit
What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit
