Perquisites may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. It also denotes something that benefits a man by going into his own pocket; it does not, however cover mere reimbursement of necessary disbursements.
Perquisites can be divided into the following 3 categories:
• Perquisites taxable in all cases
• Perquisites not taxable
• Perquisites which are taxable only in the hands of specified Employees.
TAXABLE (Subject to Conditions) |
• | Rent free accommodation. |
• | Provision of Motor Car or any other Conveyance for personal use. |
• | Provision of free or concessional Educational facilities. |
• | Reimbursement of Medical Expenditure. |
• | Expenditures on Foreign Travel and Stay during medical expenditure. |
• | Supply of Gas, Electricity & Water. |
• | Leave Travel Concession subject to conditions and only the actual amount spent. |
• | Computer / Laptop for official use. |
• | Initial fees paid for corporate membership of a club. |
• | Refreshment provided during working hours in office premises. |
• | Payment of annual premium on personal accident policy. |
• | Subscription to periodicals and journals required for discharge of work. |
• | Provision of Medical facilities. |
• | Gift isn't exceeding Rs.5000/- p.a. |
• | Use of health club, sports facility. |
• | Free telephones: fixed or mobiles. |
• | Interest free / concessional loan not exceeding Rs.20,000/- (limit not applicable for medical treatment) |
• | Children Educational Allowance (Rs.100 p.m. per child – max. 2 children) & Hostel Allowance (Rs.300/- p.m. per child – maximum 2 children) is exempt. |
• | Transport Allowance: Rs.800/- p.m. (Rs.1600/- p.m. if handicapped) |
• | Fixed Medical Allowance is taxable in the hands of employees however, Medical facilities in a private clinic is exempt to the extent of Rs.15,000/- and in Government Hospitals to any extent. |
• | Contribution to Medical Insurance Policy by the employer is exempt to tax in the hands of employees to any extent. |
• | Amount spent for providing free educational facilities and training of the employee is not taxable in the hands of employees to any extent. |
• | Gift to employees of Movable Assets (other than computer / laptop, electronic items and car) after using for 10 years. |
• | Contribution to recognized Provident Fund / approved superannuation fund, pension or deferred annuity scheme and staff group insurance scheme. |
• | Free meal provided during working hours or through paid non transferable vouchers not exceeding Rs.50/- per meal or free meal provided during working hours in a remote area. |
• | The value of any benefit provided free or at a concessional rate (including goods sold at concessional rate) by a company to the Employees by way of allotment of shares etc., under the Employees stock option plan as per Central Government Guidelines. |
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