perquisite valuation rules

Perquisite valuation of annual accretion to balance of PF & Pension

Income Tax - Method for computation of Perquisite Value as referred in section 17(2)(viia) of Income Tax Act, 1961 (the Act) in respect of annual accretion to the balance of recognised provident Fund (RPF), Approved Superannuation Fund and National Pension scheme (NPS). Finance Act 2020 had amended the provisions of section 17(2) of the Act and substi...

Read More

Perquisite Valuation under Clause (vii) & (viia) of Section 17

Income Tax - Note on Perquisite Valuation under Clause (vii) & (viia) of Section 17of Income Tax Act, 1961 Finance Act, 2020 had made amendment in Sec 17 of the Income Tax Act which deals with valuation of perquisite. It had introduced two new sub- classes, Sub Clause (vii) & (viia) Under Clause 2 of the section 17. […]...

Read More

Rules for valuation of perquisite forming part of Salary Income

Income Tax - The rules for valuation of perquisite given by employer to employees are as under : - I. Accommodation :- For purpose of valuation of the perquisite of unfurnished accommodation, all employees are divided into two categories: (i)Central Govt. & State Govt. employees; and (ii)Others. For employees of the Central and State governments the...

Read More

Perquisites- Domestic Servants, Gas/Electricity/water, Education, Sweat Equity

Income Tax - In this article we are covering following Perquisites taxable as salary- 1. Domestic Servants, 2. Gas, Electricity or water supplied by employer, 3. Education facility, 4. Specified Security or Sweat Equity Shares Allocated, 5. Interest Free Loans...

Read More

Valuation of Perquisites of Salaried Taxpayer

Income Tax - It is felt that in many cases, neither the employers nor their employees are aware about the includability of the value of various perquisites in the total income of the employees. In some cases, employers and employees are not aware as to how to correctly value the perquisites. Efforts have been made to address all […]...

Read More

Rent Concession on house provided to assessee by employer is perquisites

Income Tax - Perquisites includes the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer....

Read More

SBI Interest Rates on 1st April, 2011- For perquisite valuation

Income Tax - State Bank of India: Interest Rates on 1st April, 2011- For the purpose of computing perquisite valuation Interest rates as on 1st April, 2011 on various loans in Personal Segment advances are as under – ...

Read More

New perquisites valuation rules for Assessment Year 2010-11 are replica of old rules

Income Tax - The salaried class, reeling under the inflationary pressures, has suffered yet another setback this holiday season with the announcement of new perquisite valuation rules by the Central Board of Direct Taxes (CBDT) on December 18. The new rules have come in the wake of the abolishment of fringe benefit tax (FBT) by finance minister Pranab...

Read More

New perquisite Valuation rules taxed almost all the perks

Income Tax - THE much-awaited perquisite valuation rules have finally been notified by the CBDT. The Board has amended Rule 3 to give effect to the abolition of FBT, announced in the Budget 2009. Vide Income Tax (13th) Amendment Rules, the Board has notified the new valuation guidelines w.e.f April 1, 2009 for the AY 2010-11. Although the rules are la...

Read More

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...

Read More

Notional Interest on Security Deposit paid by employer for accommodation of its employee – perquisites?

CIT Vs Shankar Krishnan (Bombay High Court) - CIT Vs Shankar Krishnan (Bombay High Court) Whether Notional Interest on Security Deposit paid by employer for accommodation of its employee will also be included while calculating perquisites. BRIEF FACTS: 1. The Assessee is a salaried employee with McKinley & Company Inc., India. The Assessee ...

Read More

LTC: TDS deductible on reimbursement to staff for foreign travel leg

State Bank of Bikaner and Jaipur (Now SBI) Vs ITO (TDS) (ITAT Jaipur) - ITAT held that order of the ld CIT(A) is hereby affirmed where he has held the assessee bank to be assessee in default for short-deduction of TDS on LFC/LTC claim relating to foreign leg of the travel of its employees being not eligible for exemption under section 10(5) r/w Rule 2B....

Read More

Reimbursement of medical expense is not perquisite u/s 17(2)

Rajkamal R. Bajaj v/s ADDL. CIT (ITAT Mumbai) - Brief facts of the case are that The assessee received a sum of Rs.90,090/- towards reimbursement of medical expenses from the company M/s Bajaj Consultants Pvt. Ltd., wherein, he is a Director and claimed the same as exempt u/s 17(2) of the Act. ...

Read More

‘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 ...

Read More

TDS & Tax on Salary | Section 192 | FY 2021-22 | AY 2022-23

Circulars No 04/2022 - (15/03/2022) - CBDT issued Income Tax Circular No. 04/2022 on 15th March 2022 and explained all provisions related to deduction of Tax At Source (TDS) on Salary or Income Tax Payable on Salary for the Financial Year 2021-22 / Assessment Year 2022-23.  GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE...

Read More

Revised rules for valuation of perquisites for F.Y. 2009-10 & amp; onwards

Notification No. 94/2009 - Income Tax - (18/12/2009) - Notification No. 94/2009 - Income Tax For the purpose of computing the income chargeable under the head Salaries, the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employm...

Read More

Recent Posts in "perquisite valuation rules"

Rent Concession on house provided to assessee by employer is perquisites

Perquisites includes the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer....

Read More
Posted Under: Income Tax |

Notional Interest on Security Deposit paid by employer for accommodation of its employee – perquisites?

CIT Vs Shankar Krishnan (Bombay High Court)

CIT Vs Shankar Krishnan (Bombay High Court) Whether Notional Interest on Security Deposit paid by employer for accommodation of its employee will also be included while calculating perquisites. BRIEF FACTS: 1. The Assessee is a salaried employee with McKinley & Company Inc., India. The Assessee was provided with rent free accommodatio...

Read More

TDS & Tax on Salary | Section 192 | FY 2021-22 | AY 2022-23

Circulars No 04/2022 15/03/2022

CBDT issued Income Tax Circular No. 04/2022 on 15th March 2022 and explained all provisions related to deduction of Tax At Source (TDS) on Salary or Income Tax Payable on Salary for the Financial Year 2021-22 / Assessment Year 2022-23.  GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL BOARD OF DIRECT TAXES DEDUCTIO...

Read More

Perquisite valuation of annual accretion to balance of PF & Pension

Method for computation of Perquisite Value as referred in section 17(2)(viia) of Income Tax Act, 1961 (the Act) in respect of annual accretion to the balance of recognised provident Fund (RPF), Approved Superannuation Fund and National Pension scheme (NPS). Finance Act 2020 had amended the provisions of section 17(2) of the Act and substi...

Read More
Posted Under: Income Tax |

Perquisite Valuation under Clause (vii) & (viia) of Section 17

Note on Perquisite Valuation under Clause (vii) & (viia) of Section 17of Income Tax Act, 1961 Finance Act, 2020 had made amendment in Sec 17 of the Income Tax Act which deals with valuation of perquisite. It had introduced two new sub- classes, Sub Clause (vii) & (viia) Under Clause 2 of the section 17. […]...

Read More
Posted Under: Income Tax |

Rules for valuation of perquisite forming part of Salary Income

The rules for valuation of perquisite given by employer to employees are as under : - I. Accommodation :- For purpose of valuation of the perquisite of unfurnished accommodation, all employees are divided into two categories: (i)Central Govt. & State Govt. employees; and (ii)Others. For employees of the Central and State governments the...

Read More
Posted Under: Income Tax | ,

Perquisites- Domestic Servants, Gas/Electricity/water, Education, Sweat Equity

In this article we are covering following Perquisites taxable as salary- 1. Domestic Servants, 2. Gas, Electricity or water supplied by employer, 3. Education facility, 4. Specified Security or Sweat Equity Shares Allocated, 5. Interest Free Loans...

Read More
Posted Under: Income Tax |

LTC: TDS deductible on reimbursement to staff for foreign travel leg

State Bank of Bikaner and Jaipur (Now SBI) Vs ITO (TDS) (ITAT Jaipur)

ITAT held that order of the ld CIT(A) is hereby affirmed where he has held the assessee bank to be assessee in default for short-deduction of TDS on LFC/LTC claim relating to foreign leg of the travel of its employees being not eligible for exemption under section 10(5) r/w Rule 2B....

Read More

Valuation of Perquisites of Salaried Taxpayer

It is felt that in many cases, neither the employers nor their employees are aware about the includability of the value of various perquisites in the total income of the employees. In some cases, employers and employees are not aware as to how to correctly value the perquisites. Efforts have been made to address all […]...

Read More
Posted Under: Income Tax |

HRA vs Rent Free accommodation- Comparison & Calculator

For salaried people most of the companies provide House Rent Allowances (HRA) and many companies also provide the facility of Rent free accommodation. Many companies provide the facility of House Rent Allowance (HRA) and in case the employee opt for rent free accommodation facility then HRA is not allowed....

Read More
Posted Under: Income Tax | ,

Browse All Categories

CA, CS, CMA (6,142)
Company Law (8,548)
Corporate Law (10,663)
Custom Duty (9,440)
DGFT (4,847)
Excise Duty (4,840)
Fema / RBI (5,303)
Finance (5,694)
Income Tax (42,465)
SEBI (4,578)
Service Tax (4,039)