Various Perquisites Given Under The Income Tax 1961

Various Perquisites Given Under The Income Tax 196

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Various Perquisites Given Under The Income Tax 1961

 

In India employees get many types of perquisite which are given to them by their employer or employing company. In India the term perquisite is rarely  used and it is denoted by the lay-man word “BHATTA”.

 

If we look this in a proper definition it looks like “Perquisites are nothing but the benefits that are enjoyed by or entitles to a person on account of his position or job. This article deals with the various types of additional benefits provided by the employers to their employees as provided and regulated by section 17(2) of the Income Tax Act, 1961.”

 

In this article we only take the brief up of various types of perquisite given under “Income Tax Act 1961” and not about their taxability as taxability calculation of every perquisite is different under Income Tax Act 1961.

 

Various Types of Perquisites:

 

All the following perquisite are fully taxable in the hands of employee subject to such conditions & limit specified in “Income Tax Act 1961”.

1)     Rent free accommodation

2)     House rent allowance

3)     Insurance premium paid on the life of employee

4)     Any amount paid by employer in respect of any obligation on behalf of                                                                                              employee.

5)    Motor Car

6)    Utility such as gas, electricity & water

7)    Free education to employee’s children in employer’s institution

8)    Sweeper, Gardner, Watchman,etc.

9)    Issue of shares of concessional rate

10)  Free or concessional food and non-alcoholic beverages

11)  Sweat equity shares given to employee.

12)  Interest-Free or concessional loan

13) Gifts or vouchers

14) Club Expenditure

15) Use of movable asset

16) Transfer of movable asset

17) Any amount paid by employer in respect of any obligation on behalf of                                                                                           employee.

 

Some fully exempt perquisites in “Income Tax Act 1961”.

 

Recreational Facilities Subsidized lunch or dinner provided by the employer.
Transport Facility Transport Facility provided by an employer engaged in the business of carrying of passengers or goods to his employees either free of charge or at concessional rate
Privilege passes and Privilege ticket These privileges passes and tickets are provided by Indian railways to its employees.
Perquisites allowed outside India by the Government Perquisites allowed outside India by the Government of India to a citizen of India for rendering services outside India.
Employer’s Contribution to staff group insurance scheme Employer taking a single insurance policy of all the staff and contributes towards the insurance premium.
Recreational Facilities Subsidized lunch or dinner provided by the employer.
Amount spent on training of employees This includes amount paid for refresher management course including expenses on boarding and lodging.
Sum payable by employer to a Approved Funds Funds include Recognized Provident Fund, Approved Superannuation Fund or Deposit-linked insurance fund.
Telephone Telephone provided by the employer to his employee at his residence.

 

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