Purview of perquisites

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 If an employee changes a job & gets relived on let’s say 15th APR-2013 and a company car is sold to him for a mutually agreed price, on MAY 15th-2013, the transfer in RTO happens in JUL-2013, then, is this transaction be covered to calculate perquisite tax, even if the person is not an company employee when the actual sale took place in the books ?

If it is to be accounted as perquisite then what slab of TDS is applicable, assuming the perquisite liability is 1.5 Lacs ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 1. The amount is taxable at the time of leaving the job. Date of registration of transfer is not relevant.

2. Tax will be calculated at the normal slab rates after including other salary income.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 Thanks Mr.Siddartha, Pl. advise, If the date of Sale is after getting relived from the services, even then is it to be considered as perquisite ?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 Yes. Sale of motor vehicle to employee is treated as perquisite in the hands of the employee. Normally such transfer is done at the time of full & final settlement which is after relieving.