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

The Income-tax Appellate Tribunal, Delhi 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 purpose of claiming an exemption under section 10(10CC) of the Income-tax Act, 1961 (‘the Act’).

 Facts of the case

• M/s Triton Holdings Limited (‘the employer’) paid income-tax on the behalf of its employees on the salary payment to them (‘tax perquisite’).
• In the return of income filed by the employees, the tax perquisite was considered as a non-monetary perquisite and accordingly, an exemption was claimed u/s 10(10CC) of the Act in respect of the same.

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