Allowance vs perqs

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Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2013 what is the basic difference between allowance n perqusite?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 March 2013 Allowances is paid in monetary nature and paid in cash directly to employee

Perquisites are non monetary nature which not paid by cash, but provided other facilities

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 April 2013 I agree with the expert. In case of allowance the receiver knows how much he is to receive but in case of perquisite the receiver does not know how much benefit he will be receiving. It all depends on the circumstances and the agreed terms as well as the limit fixed by the Income Tax Department

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