Perquisite

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Dear all
Please give me meaning of perquisite & type of perquisite. what is taxable of perquisite u/s sec. 17(2),

CA Manish

CA Manish (Expert)
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26 November 2012 Perquisites mean any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

CA Manish

CA Manish (Expert)
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26 November 2012 A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

CA Manish

CA Manish (Expert)
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26 November 2012 Section 17(2) of income tax perquisites includes.
1- Rent free accommodation under section 17(2) 1

2- Accommodation in concessional rate of rent under section 17(2) 2

3- Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3

4- Obligation of the employee paid or reimbursed by the employer under section 17(2)4

5- Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Thank you very much sir for reply.

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