Income tax on montary perks & non monetary perks
This query is : Resolved
31 January 2012
sir i am a bank employee.i get monetary and non monetary perks.the tax on both perks are borne by bank. please tell me tax borne by banks on both type of perks is taxable in hands of me or not.
31 January 2012
Tax paid only on non-monetary perks will not be included in your income. (Section 10(10CC).
20 February 2012
WHEN I ENTER tax paid by employer on behalf of the employee under section 192(1A)IN FORM 12BA THEN TOTAL TDS DOES NOT MATCH WITH FORM 16.
20 February 2012
WHEN I ENTER tax paid by employer on behalf of the employee under section 192(1A)IN FORM 12BA THEN TOTAL TDS DOES NOT MATCH WITH FORM 16.
20 February 2012
WHEN I ENTER tax paid by employer on behalf of the employee under section 192(1A)IN FORM 12BA THEN TOTAL TDS DOES NOT MATCH WITH FORM 16.
31 July 2024
In the context of employment, if your employer bears the tax liability on your behalf for monetary and non-monetary perks, here's how the tax implications generally work:
### **1. **Monetary and Non-Monetary Perks**
**Monetary Perks:**
- **Definition:** These include cash bonuses, allowances (such as house rent allowance, medical allowance), and any direct cash benefits.
- **Tax Implication:** Monetary perks are part of your salary and are fully taxable as income under the head "Salaries." The tax on these perks is calculated based on your total salary income.
**Non-Monetary Perks:**
- **Definition:** These include benefits like company-provided vehicles, accommodation, or other in-kind benefits.
- **Tax Implication:** Non-monetary perks are also taxable. The valuation of these perks is determined as per the Income Tax Rules and is added to your salary income.
### **2. **Tax Payment by Employer**
**Tax Payment by Employer:**
- **Scenario:** If the bank pays the tax on the perks (both monetary and non-monetary) on your behalf, this is considered a perquisite.
- **Taxable Amount:** The amount of tax paid by the employer on your behalf is treated as a perquisite and is included in your taxable income. It is taxed as part of your salary income.
### **3. **Filing and Discrepancies**
**Form 12BA:**
- **Purpose:** Form 12BA is used to report details of perquisites and other benefits provided to the employee.
- **Section 192(1A):** This section pertains to the tax calculation on income, including perquisites. The employer deducts tax based on the total income including these perks.
**Discrepancy in TDS:**
- **Issue:** If the total TDS shown in Form 16 does not match with the Form 12BA or your calculation, it could be due to:
- Incorrect reporting of perquisites or tax paid by the employer.
- Misalignment in the calculation of taxable income and tax deduction.
- Errors in Form 16 or Form 12BA.
**Steps to Resolve Discrepancy:**
1. **Verify Information:** Check the details provided in Form 12BA and Form 16 to ensure that all monetary and non-monetary perks, as well as the tax paid by the employer, are correctly reported.
2. **Cross-Check Calculations:** Ensure that the taxable value of perquisites and the tax borne by the employer are correctly included in your taxable income and TDS calculations.
3. **Contact Employer:** If discrepancies persist, contact your HR or payroll department to rectify any reporting errors.
4. **Update Returns:** If required, file a revised income tax return to correct the discrepancies.
### **Summary**
1. **Monetary Perks:** Fully taxable as part of your salary.
2. **Non-Monetary Perks:** Also taxable; valued as per tax rules and included in your salary.
3. **Tax Paid by Employer:** Treated as perquisite, included in taxable income.
4. **Discrepancies:** Resolve by verifying details and contacting your employer if necessary.
By ensuring accurate reporting and resolving discrepancies, you can correctly match the TDS and ensure compliance with tax regulations. If you need specific guidance, consulting a tax professional can provide more precise assistance.
### **1. **Monetary and Non-Monetary Perks**
**Monetary Perks:**
- **Definition:** These include cash bonuses, allowances (such as house rent allowance, medical allowance), and any direct cash benefits.
- **Tax Implication:** Monetary perks are part of your salary and are fully taxable as income under the head "Salaries." The tax on these perks is calculated based on your total salary income.
**Non-Monetary Perks:**
- **Definition:** These include benefits like company-provided vehicles, accommodation, or other in-kind benefits.
- **Tax Implication:** Non-monetary perks are also taxable. The valuation of these perks is determined as per the Income Tax Rules and is added to your salary income.
### **2. **Tax Payment by Employer**
**Tax Payment by Employer:**
- **Scenario:** If the bank pays the tax on the perks (both monetary and non-monetary) on your behalf, this is considered a perquisite.
- **Taxable Amount:** The amount of tax paid by the employer on your behalf is treated as a perquisite and is included in your taxable income. It is taxed as part of your salary income.
### **3. **Filing and Discrepancies**
**Form 12BA:**
- **Purpose:** Form 12BA is used to report details of perquisites and other benefits provided to the employee.
- **Section 192(1A):** This section pertains to the tax calculation on income, including perquisites. The employer deducts tax based on the total income including these perks.
**Discrepancy in TDS:**
- **Issue:** If the total TDS shown in Form 16 does not match with the Form 12BA or your calculation, it could be due to:
- Incorrect reporting of perquisites or tax paid by the employer.
- Misalignment in the calculation of taxable income and tax deduction.
- Errors in Form 16 or Form 12BA.
**Steps to Resolve Discrepancy:**
1. **Verify Information:** Check the details provided in Form 12BA and Form 16 to ensure that all monetary and non-monetary perks, as well as the tax paid by the employer, are correctly reported.
2. **Cross-Check Calculations:** Ensure that the taxable value of perquisites and the tax borne by the employer are correctly included in your taxable income and TDS calculations.
3. **Contact Employer:** If discrepancies persist, contact your HR or payroll department to rectify any reporting errors.
4. **Update Returns:** If required, file a revised income tax return to correct the discrepancies.
### **Summary**
1. **Monetary Perks:** Fully taxable as part of your salary.
2. **Non-Monetary Perks:** Also taxable; valued as per tax rules and included in your salary.
3. **Tax Paid by Employer:** Treated as perquisite, included in taxable income.
4. **Discrepancies:** Resolve by verifying details and contacting your employer if necessary.
By ensuring accurate reporting and resolving discrepancies, you can correctly match the TDS and ensure compliance with tax regulations. If you need specific guidance, consulting a tax professional can provide more precise assistance.
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