Deemed Income
This query is : Resolved
30 December 2009
A school providing concessional education to the children of staff member. will it be treated as deemed income of the respective staff member?
30 December 2009
Yes, It will be taxable u/s 17(2) as perquisite as follow:
=Value of Education for other children-Rs. 1000 per child per month.
So, If according to above method there is positive amount, that amount will be taxable in the hands of that staff employee.
eg. If child is studying in Xth class and fees of this class is Rs. 2,500 pm per child. Therefore, Taxable amount will be:
=2,500-1,000
= Rs. 1,500 pm per child
For 1 year = 1,500*12
= 18,000
Therefore, Rs. 18,000 will be included in the Salary of the Staff Employee.
Please Note: If employee also paying some amount to School then that paid amount will be deductable from Rs. 18,000.
Regards!!!
Dinesh S. Adhikari
Yes, It will be taxable u/s 17(2) as perquisite as follow:
=Value of Education for other children-Rs. 1000 per child per month.
So, If according to above method there is positive amount, that amount will be taxable in the hands of that staff employee.
eg. If child is studying in Xth class and fees of this class is Rs. 2,500 pm per child. Therefore, Taxable amount will be:
=2,500-1,000
= Rs. 1,500 pm per child
For 1 year = 1,500*12
= 18,000
Therefore, Rs. 18,000 will be included in the Salary of the Staff Employee.
Please Note: If employee also paying some amount to School then that paid amount will be deductable from Rs. 18,000.
Regards!!!
Dinesh S. Adhikari
30 December 2009
agree
30 December 2009
If the school charges the same fee which has been charging for other student, then , there is no perquisite will be applicable.
If it is free of cost or at a concessional rate, then, perquisite will be applicable.
If it is free of cost or at a concessional rate, then, perquisite will be applicable.
30 December 2009
It is perks to the staff member taxed accordingly to the staff
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