perquisite

Valuation of perquisite in respect of free education

Income Tax - Fixed education allowance given in cash by the employer to the employee to meet the cost of education of the family members of the employee is exempt from tax to the extent of Rs. 100 per month per child (up to a maximum of two children). Moreover,any allowance granted to an employee to meet hostel expenditure of his child is exempt from ...

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Salary Income – Meaning of term Perquisite and Taxability

Income Tax - Dictionary meaning 1. A gain or profit incidentally made from employments in addition to regular salary or wages,especially one of a kind expected or promised 2. Casual emolument or benefit attached to an office or position in addition to salary or wages 3. Anything left over that a servant or other has by custom a […]...

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Perks & Jerks for Employees!

Income Tax - With virtually no reprieve from the tax burden on their pay packages and continuing anomalies and inequities, the new rules for valuation of perquisites announced by the Central Board of Direct Taxes (CBDT) on December 18, 2009 have hugely disappointed millions of salaried employees....

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New perquisite valuation rules to hit employees with company cars

Income Tax - New perk rules :- Under the new perquisite rules, a distinction is to be made between the car owned by the employer and the car owned by the employee, as the value of the tax perquisite in the two scenarios varies considerably. Even though there could be different permutation and combination, under which the car benefit could be provided ...

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Company-owned car is more beneficial for both employer and employee under the new perquisite valuation rules applicable from April 1 2009

Income Tax - Last week, CBDT issued a notification on how each perquisite provided to a salaried employee should be taxed. It is applicable with retrospective effect, from April 1 2009. The guidelines cover every perk: home accommodation to gifts to educational benefits. The most important change, though, is taxation of car facilities....

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If you salary has larger proportion of perquisites then you will need to pay more tax for this year

Income Tax - It's not often that the taxman comes to sting you five-and-a-half months after the budget speech. But finance minister Pranab Mukherjee's decision to abolish the fringe benefits tax (FBT) last July is only now being clarified by the taxman, and the net result is that you will pay more tax.Not everybody, though. The abolition of FBT affect...

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20 year old undergraduate fetch the offer of 32 lakhs per Annum

Income Tax - For someone who aspires for a hole-in-one as an amateur golfer, Adit Mathur has made a Tiger Woodsian debut on the job circuit. The 20-year-old undergrad of Shri RamCollege of Commerce (SRCC) is now the toast of Delhi University (DU) as he has teed in an offer from Deutsche Bank for an annual compensation package of Rs 32 lakh ($69,000). ...

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Valuation methodology at fault not the assessee

Income Tax - The Delhi Income-Tax Tribunal has held that valuation of perquisite determined by the assessee relying on interpretation of Taxman’s Direct Taxes Ready Reckoner, the assessee could not be deemed to be an assessee-in-default and consequently, interest under section 201(1A) could not be levied though the valuation methodology was held not...

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‘No concession no perquisite’ is for employee and not for employer for TDS Deduction – SC

Regional Dir. ONGC Ltd. Vs Assn. of Sc. & Tech. Offr. ONGC Ltd. (Supreme Court in India) - Scheme of the Act provides that after the employer deducts from the salary of the employee the tax and pays the same to the Central Government, a Tax Deduction Certificate is furnished to the employee and it is for the employee to claim before the Assessing Officer in the assessment proceedings and ...

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The perquisite value of Rent Free Accommodation shared between expatriates should be on a proportionate allocable basis

ACIT Vs. Shri Toshio Takeuchi (ITAT Delhi) - ITAT Delhi held that the perquisite value of rent free accommodation (RFA) provided by the employer being shared between expatriates should be on a proportionate allocable basis provided it is supported by appropriate evidence....

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Where employer bank has given loan to employees at rate of interest lower than SBI lending rate, value of concessional loan is taxable as perquisite

All India Punjab National Bank Officers' Association Vs. Chairman- Cum- Managing Director, Punjab National Bank (Madhya Pradesh High Court) - The Legislature, by inserting sub-clause (vi) to clause(2) of section 17 with effect from 1-4-2009, has prescribed fringe benefits or amenities which are treated to be perquisite. Rule 3(7) prescribes the amenity/benefit by way of valuation; it has the status of the benchmark; if the valuation resul...

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Tax paid by employer on behalf of employee is a non-monetary perquisite subject to single grossing up

Triton Holdings Ltd. Vs Dy. Director of Income Tax, Deharadun (ITAT Delhi) - The Income-tax Appellate Tribunal, Delhi in the case of Triton Holdings Ltd. vs Dy. Director of Income Tax, Deharadun (ITA Nos. 2541 to 2559/Del/2009) held that the tax paid by employer on the behalf of employees should be considered as a non-monetary perquisite in the hands of the employees for the...

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Taxability of ESOP up to 31.03.2000

ACIT Vs Tripti Sharma (ITAT Mumbai 'I' Bench) - In respect of shares acquired under stock option scheme, the difference between the price of shares at the time of exercise of option and the predetermined price is liable to tax as perquisite under s. 17(2)(iii) up to 31st March, 2000....

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Amendment in Rules Related to Valuation of Perquisites forming part of salary income

271/2007 - (07/11/2007) - The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire cha...

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Recent Posts in "perquisite"

Valuation of perquisite in respect of free education

Fixed education allowance given in cash by the employer to the employee to meet the cost of education of the family members of the employee is exempt from tax to the extent of Rs. 100 per month per child (up to a maximum of two children). Moreover,any allowance granted to an employee to meet hostel expenditure of his child is exempt from ...

Read More
Posted Under: Income Tax |

Salary Income – Meaning of term Perquisite and Taxability

Dictionary meaning 1. A gain or profit incidentally made from employments in addition to regular salary or wages,especially one of a kind expected or promised 2. Casual emolument or benefit attached to an office or position in addition to salary or wages 3. Anything left over that a servant or other has by custom a […]...

Read More
Posted Under: Income Tax |

‘No concession no perquisite’ is for employee and not for employer for TDS Deduction – SC

Regional Dir. ONGC Ltd. Vs Assn. of Sc. & Tech. Offr. ONGC Ltd. (Supreme Court in India)

Scheme of the Act provides that after the employer deducts from the salary of the employee the tax and pays the same to the Central Government, a Tax Deduction Certificate is furnished to the employee and it is for the employee to claim before the Assessing Officer in the assessment proceedings and get a determination done and in case he ...

Read More

The perquisite value of Rent Free Accommodation shared between expatriates should be on a proportionate allocable basis

ACIT Vs. Shri Toshio Takeuchi (ITAT Delhi)

ITAT Delhi held that the perquisite value of rent free accommodation (RFA) provided by the employer being shared between expatriates should be on a proportionate allocable basis provided it is supported by appropriate evidence....

Read More

Where employer bank has given loan to employees at rate of interest lower than SBI lending rate, value of concessional loan is taxable as perquisite

All India Punjab National Bank Officers' Association Vs. Chairman- Cum- Managing Director, Punjab National Bank (Madhya Pradesh High Court)

The Legislature, by inserting sub-clause (vi) to clause(2) of section 17 with effect from 1-4-2009, has prescribed fringe benefits or amenities which are treated to be perquisite. Rule 3(7) prescribes the amenity/benefit by way of valuation; it has the status of the benchmark; if the valuation results in a positive figure, i.e., State Ban...

Read More

Perks & Jerks for Employees!

With virtually no reprieve from the tax burden on their pay packages and continuing anomalies and inequities, the new rules for valuation of perquisites announced by the Central Board of Direct Taxes (CBDT) on December 18, 2009 have hugely disappointed millions of salaried employees....

Read More
Posted Under: Income Tax |

New perquisite valuation rules to hit employees with company cars

New perk rules :- Under the new perquisite rules, a distinction is to be made between the car owned by the employer and the car owned by the employee, as the value of the tax perquisite in the two scenarios varies considerably. Even though there could be different permutation and combination, under which the car benefit could be provided ...

Read More
Posted Under: Income Tax |

Company-owned car is more beneficial for both employer and employee under the new perquisite valuation rules applicable from April 1 2009

Last week, CBDT issued a notification on how each perquisite provided to a salaried employee should be taxed. It is applicable with retrospective effect, from April 1 2009. The guidelines cover every perk: home accommodation to gifts to educational benefits. The most important change, though, is taxation of car facilities....

Read More
Posted Under: Income Tax |

New perquisite valuation rules in respect of rent-free accommodation and points which merit attention alongwith comparison with HRA

After much wait, the new perquisite rules have now been notified last month, which are effective retrospectively from April 1, 2009. By and large, the perquisite rules in respect of rent-free accommodation are similar to the erstwhile rules. Nevertheless, the following points merit attention:...

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Posted Under: Income Tax | ,

Taxability of ESOP for Assessment year 2010-2011

Employee stock options (ESOPs) is a significant employer-granted benefit that too is subject to the above FBT /perquisite-based taxation system. In fact, it almost seems as if the authorities cannot quite make up their minds as to how they wish to tax shares given to employees by their employers on a concessional basis. Having been subjec...

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Posted Under: Income Tax |
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