21 July 2023
By virtue of Rule3(7)(iv), only gifts paid in excess of value of Rs.5000 will be taxable as perquisites u/s 17(2)(viii). My clients employer had deducted TDS on entire amount initially & in March salary had adjusted the wrongly deducted tds. But form 16 still shows the entire amount as taxable against value of perquisites. Now in ITR if I offer only amount exceeding 5000 for tax, there will be a mismatch with Form 16. Will this cause any problem?
21 July 2023
Read the proviso carefully.... ""Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as “nil”. ""
It means when the value is more than Rs. 5K, full amount will be taken into consideration.
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