salary computation
This query is : Resolved
31 May 2009
gardeners salary in relation to house owned by employer...provided to employe.. there has been a confusion due to the fact .. in sum books its exempted.. others. taxable.. kindly explain with a case law if aplicable.. i think a circular was passed regarding this...
31 May 2009
Refer to section 17(2)(iii)(c), if employee is covered in this criteria, then it is taxable
31 May 2009
any case law related or any circular???
31 May 2009
sir, found that.. thnx Circular 122, dated 19.10.73,
31 May 2009
Perquisite Value For Household Servants Provided By The Employer
The perk value of services, for sweeper gardener, watchman or personla attendant the residence of employee irrespective of the degree of personal service rendered, shall be the actual cost to the employer
* When the employer provides gardner, sweeper ,watchman and domestic servant to the employee the perquisite value is determined as under:-
* When employer pays or reimburse wages of the gardner, sweeper, watchman and domestic servant to the employee 100% of the wages paid are taxable as a perquiste.
* In a situation where an accommodation owned by an employer is provided to the employee and the services of the gardner are also provided with the accommodation his services are not a perquisite in the hands of the employee. But the salary of the gardner is to be taken into account in determining the fair rental value of the accommodation.
* Servant allowance given by the employer to the employee to meet the expenses on account of the salary of the servant is fully taxable.
* Circular 122 dated 19.10.73 clarified that if the employer employs a gardner for building belonging to the employer, it would not be treared as perk. This principle continues to be applicable even now with the possibility of it being extrapolated to other servants.
* A helper engaged for performance of the duties of an office or employment of profit is not considered as perk under rule 2BB, read with Section 10(14). Many employees, paricularly at the top level, carry out part of the work at their residence. I will go to the extent of sharing that the employee can directly engage the service of a helper and claim reimbursement from the employer without it being considered as perk.
The perk value of services, for sweeper gardener, watchman or personla attendant the residence of employee irrespective of the degree of personal service rendered, shall be the actual cost to the employer
* When the employer provides gardner, sweeper ,watchman and domestic servant to the employee the perquisite value is determined as under:-
* When employer pays or reimburse wages of the gardner, sweeper, watchman and domestic servant to the employee 100% of the wages paid are taxable as a perquiste.
* In a situation where an accommodation owned by an employer is provided to the employee and the services of the gardner are also provided with the accommodation his services are not a perquisite in the hands of the employee. But the salary of the gardner is to be taken into account in determining the fair rental value of the accommodation.
* Servant allowance given by the employer to the employee to meet the expenses on account of the salary of the servant is fully taxable.
* Circular 122 dated 19.10.73 clarified that if the employer employs a gardner for building belonging to the employer, it would not be treared as perk. This principle continues to be applicable even now with the possibility of it being extrapolated to other servants.
* A helper engaged for performance of the duties of an office or employment of profit is not considered as perk under rule 2BB, read with Section 10(14). Many employees, paricularly at the top level, carry out part of the work at their residence. I will go to the extent of sharing that the employee can directly engage the service of a helper and claim reimbursement from the employer without it being considered as perk.
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