30 April 2010
There was a notification from the institue also on this that perquisites not relevant for May exams Here is the notification
Announcement relating to taxation papers for students appearing in May 2010 examination PE-II [Income-tax and Central Sales Tax], PCC/IPCC [Taxation], Final (Old) Course [Direct Taxes] and Final (New) Course [Direct Tax Laws] - (22-02-2010) --------------------------------------------------------------------------------
(1) Fringe Benefit Tax is not applicable from A.Y.2010-11 and hence, is not relevant for May 2010 examination.
(2) Consequential Notification of new perquisite rules on 18.12.2009 not to apply for May 2010 examination
Consequent to abolition of fringe benefit tax, certain benefits taxed earlier as fringe benefits in the hands of the employer would now be taxable as perquisites in the hands of the employees. For this purpose, new perquisite valuation rules have been notified vide Notification No.94/2009/ F.No.142/25/2009-S.O.(TPL), dated 18.12.2009 with retrospective effect from 1.4.2009. However, the new perquisite valuation rules would be applicable only for November 2010 examination. They would not be applicable for May 2010 examination, since only notifications/circulars issued up to 31st October, 2009 are relevant for May 2010 examination.
(3) Applicability of erstwhile Rule 3 for May 2010 examination Therefore, the erstwhile Rule 3 would be applicable for May 2010 examination. All the perquisites which were earlier taxable in the hands of the employee, only if the employer was not liable to pay fringe benefit tax, would now be taxable in the hands of the employee in all cases, since no employer is liable to pay fringe benefit tax for A.Y.2010-11. Rule 3(7), providing for valuation of “other fringe benefits and amenities”, is based on the terms of the provisions contained in the erstwhile clause (vi) of section 17(2). The Finance (No.2) Act, 2009 has amended section 17(2) by including certain other perquisites under clauses (vi) and (vii) of section 17(2). Consequently, the residual clause, namely, clause (viii) of section 17(2), now provides for taxing the value of any other fringe benefit or amenity as may be prescribed. Therefore, the Rule 3(7), prescribing the fringe benefits or amenities in terms of the erstwhile clause (vi) [now clause (viii)] of section 17(2)] have been given in the latest study material relevant for May 2010 examination.
26 July 2025
For the May 2010 exam, the **taxable value of perquisite for use of a motor car** provided by the employer to the employee is generally calculated based on the engine capacity and usage.
Here’s a quick summary as per Income Tax rules applicable around 2010:
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### Taxable Perquisite Value for Motor Car (Employer-provided)
| Engine Capacity | Amount of Perquisite (Monthly) | | --------------- | ------------------------------ | | Up to 1600 cc | Rs. 1,800 per month | | Above 1600 cc | Rs. 2,400 per month |
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### Notes:
* This amount is considered as **perquisite value** and added to the employee’s salary income. * If the car is used **exclusively for official purposes**, then the perquisite value may be nil. * If the employee pays for fuel or maintenance, the taxable perquisite amount may be reduced accordingly. * These values were fixed by CBDT circulars and may vary slightly, but this is the standard method for the May 2010 exam.
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