Tax on Perquisite

This query is : Resolved

piyush gaur (Querist)
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24 February 2020 Any employee purchase TV in Feb 2020 (FY 2019-20), and submit the bill to employer (Bill date 14.02.2020), now employer follows the procedure & expected to pay amount to him in April 2020 (FY 2020-21), now for calculation of Tax on perquisite, which financial year for employee should be considered.
i.e. FY 2019-20 (Purchase by Employee & submitted to Employer)
or FY 2020-21 (Reimbursement by employer to employee).

Also tell weather employer needs to create provision on March 31 or not.

Amol S Joglekar

Amol S Joglekar (Expert)
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25 February 2020 please check the policy of your company.
Normally the accounts department makes the calculations as of 31/01/ and then they are bit reluctant to change this estimate as on 31/01.
In your case, there is no harm in taxing the perquisite in the financial year 2019-20, but as i said it could be the problem of account department that they are showing it in the next year.
Please check it with your account department.