Perquisite

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Deviki Vijaybergi (Querist)
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12 January 2010 (i) In terms of new perquisite valutation rules, 2009 whether cash gift to the extenet of Rs. 4,500 is taxable, if given by employer to his employee.

In terms of circular no. 15/2001 dt. 12.12.2001 under IT Act, gift made in cash or converible into cash, like gift cheque etc. do not fall in the perview of exemption catagory i.e., taxable.

(ii) for uniform allowance is it necessary to have a single dress code in a company or it also includes different formal dress in same company.

CA Pramod Jain

CA Pramod Jain (Expert)
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12 January 2010 gift upto rs.5000/- in a fy is exempt for employee.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 January 2010 Yes , up to Rs.5000/- not taxable

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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12 January 2010 agree to expert

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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13 January 2010 But according to section 17(2)(vi), where taxability of gift given, it is also given that Rs. 5,000 limit is not applicable in Gift is in the nature of CASH.

Therefore, These 4,500 will be taxable in the hands of employee.

2) That uniform allowance is for maintenance for the uniform. But, if you are not wearing your uniform in office it means that you are not spending that Uniform allowance for official purpose, therefore full amount will be taxable.

Regards!!!
Dinesh S. Adhikari

Deviki Vijaybergi

Deviki Vijaybergi (Querist)
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14 January 2010 In terms of circular no. 15/2001 dt. 12.12.2001 under IT Act, gift made in cash or converible into cash, like gift cheque etc. do not fall in the perview of exemption catagory i.e., taxable

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