Perquisite of Educational Facilities
This query is : Resolved
RAMAKRISHNAN MB
(Querist)
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??
CMA Ramesh Krishnan
(Expert)
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
RAMAKRISHNAN MB
(Querist)
17 February 2011
Is there any circular or case law in support of this view?
CA. Lohith Jagadeesh
(Expert)
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
RAMAKRISHNAN MB
(Querist)
20 February 2011
dear mr lohith
thanks so much
thanks so much
CMA Ramesh Krishnan
(Expert)
20 February 2011
Yes. Checked the provision & Agreed, Mr.Lohith Jagadeesh is correct.& sorry for my first reply
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