CA Vidyasagar B (Assistant Manager ) (176 Points)
24 December 2009Is the tax paid by employer on non monetary perquisite is considered as income and will be included in the salary income of employee?
Yeshwanth
(Chartered Accountant)
(145 Points)
Replied 24 December 2009
Yes see rule 3(8) for the valuation
CA Kanveer Singh Dhingra
(Merchant Banker)
(193 Points)
Replied 25 December 2009
CA Kanveer Singh Dhingra
(Merchant Banker)
(193 Points)
Replied 25 December 2009
Amir
(Learner)
(4016 Points)
Replied 25 December 2009
Tax paid on non monetary perks by the employer is not taxable in hands of employee...it is an exempted perquisite...even if the amount is in excess of Rs. 50,000/- this is because the perks in kind from employer is specifically covered under salary and hence it cannot be covered under the general provision of other sources...
In short "Exempted in hands of employee irrespective of the amount" and "No deduction of that amount will be available to the Employer under Sec 40...
Vikram Gagneja
(a/c)
(108 Points)
Replied 25 December 2009
if the employer has paid tax on non-monetory perquisites then no tax will be paid by employee.
the non monetory perquisites will be added in the income of the employee but it will be exempt in his/her hands and no tax will be paid by employee
SUNIL
(PCC )
(282 Points)
Replied 25 December 2009
I SAID ABOUT THIS TOPIC THAT - WHICH IS MY LIBILITY , IS PAID BY ANY OTHER PERSON (EMPLOYER) IS TREATED AS PERQUISITE.
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