Perquisite of Educational Facilities
This query is : Resolved
16 February 2011
Perquisite in respect of provision of educational facilities in the own institution or any other institution because of employment - shall be equal to the value of similar education.
However if the value does not exceed Rs.1000 perq will be "NIL"
Question is - If the preq value exceeds Rs.1000/- the excess over 1000 is taxable (or) the total value itself become taxable??
However if the value does not exceed Rs.1000 perq will be "NIL"
Question is - If the preq value exceeds Rs.1000/- the excess over 1000 is taxable (or) the total value itself become taxable??
16 February 2011
Taxable only the amount exceeding Rs. 1000, suppose the value Rs.1500 then the taxable value is R(1500-1000) Rs.500
17 February 2011
Is there any circular or case law in support of this view?
18 February 2011
Hi,
I disagree with the Expert.
The provisions says among other thngs
"IF THE COST OF SUCH EDUCATION OR THE VALUE OF SUCH BENEFIT PER CHILD DOES NOT EXCEED Rs.1000/- P.M, NOTHING SHALL BE TAXED AS PERQUISITE"
which means
"IF IT CROSSES Rs.1000/- P.M THEN EVERY THING SHALL BE TAXED & NOT THE EXCESS AMOUNT ONLY"
Eg.
Value = Rs.1750/- p.m , then entire value of Rs.1750/- p.m shall be taxed.
unlike
CHILDERN EDUCATION ALLOWANCE, WHERE THE PROVISION SAYS
"is exempt UPTO Rs.100/- P.M.P.CHILD UPTO A MAXIMUM OF 2 CHILDREN"
Since the word upto is given, anything over & above the mentioned limits, only the excess shall be taxable.
Eg.
If Allowance of Rs.250/- p.m is given, then only Rs.150/- p.m is taxed
Hope i have resolved the Issue.
Thank you,
Regards
CA. LOHITH.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
I disagree with the Expert.
The provisions says among other thngs
"IF THE COST OF SUCH EDUCATION OR THE VALUE OF SUCH BENEFIT PER CHILD DOES NOT EXCEED Rs.1000/- P.M, NOTHING SHALL BE TAXED AS PERQUISITE"
which means
"IF IT CROSSES Rs.1000/- P.M THEN EVERY THING SHALL BE TAXED & NOT THE EXCESS AMOUNT ONLY"
Eg.
Value = Rs.1750/- p.m , then entire value of Rs.1750/- p.m shall be taxed.
unlike
CHILDERN EDUCATION ALLOWANCE, WHERE THE PROVISION SAYS
"is exempt UPTO Rs.100/- P.M.P.CHILD UPTO A MAXIMUM OF 2 CHILDREN"
Since the word upto is given, anything over & above the mentioned limits, only the excess shall be taxable.
Eg.
If Allowance of Rs.250/- p.m is given, then only Rs.150/- p.m is taxed
Hope i have resolved the Issue.
Thank you,
Regards
CA. LOHITH.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
20 February 2011
dear mr lohith
thanks so much
thanks so much
20 February 2011
Yes. Checked the provision & Agreed, Mr.Lohith Jagadeesh is correct.& sorry for my first reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Applicable TDS for Purchase of Flat from NRI
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
