Perquisite

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Dear all
Please give me meaning of perquisite & type of perquisite. what is taxable of perquisite u/s sec. 17(2),

CA Manish

CA Manish (Expert)
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26 November 2012 Perquisites mean any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

CA Manish

CA Manish (Expert)
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26 November 2012 A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

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CA Manish

CA Manish (Expert)
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26 November 2012 Section 17(2) of income tax perquisites includes.
1- Rent free accommodation under section 17(2) 1

2- Accommodation in concessional rate of rent under section 17(2) 2

3- Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3

4- Obligation of the employee paid or reimbursed by the employer under section 17(2)4

5- Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Thank you very much sir for reply.