Perquisite value for TV given by employer to employee

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This discussion clarifies how to calculate the taxable perquisite value of a TV provided by an employer to an employee. The value is determined as 10% of the asset's original cost if owned by the employer, or the actual rent paid if leased. This 10% calculation is applied annually for 10 years, based on the original cost, not a reducing balance. Gifts exceeding Rs 5,000 are also taxable compensation.

Prabhu K

Prabhu K (Querist)
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04 September 2023 Dear Experts,
Can any one guide me how much perquisite value to be added for TV given by employer to employee and how many years we need to add this perquisite for calculating TDS of employee.
Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 September 2023 Any gift received from the employer, of a sum exceeding Rs5,000, is treated as taxable compensation in your hands [as per Section 17(2)(viii) of the Income Tax Act, 1961 read with Rule 3(7)(iv) of the Income Tax Rules, 1962]. Your employer is required to withhold taxes from your salary in respect of such a gift.

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Prabhu K

Prabhu K (Querist)
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04 September 2023 Dear Sethuraman sir,
Thanks for your reply.
Please note that this assets are capitalized in the books of employer but given to employee for their usage after usage this assets will be returned to employer.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 September 2023 Movable asset other than Laptops, computers and Motor Car*: 10% of original cost of the asset (if asset is owned by the employer) or actual higher charges incurred by the employer (if asset is taken on rent) less amount recovered from employee.

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Prabhu K

Prabhu K (Querist)
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04 September 2023 Dear Sethuraman sir,
Thank you very much for sharing the perquisites percentage.
could you tell me, how many years we can provide perquisites @10% for employees
For example Asset value Rs.100000/- 1st year 10% on 1,00,000/- = Rs.10000, in 2nd year how much value we can provide as perquisites whether Rs.10,000/- or Rs.9,000/-

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 September 2023 It's 10,000 for 10 years.

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Prabhu K

Prabhu K (Querist)
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04 September 2023 Dear Seetharaman sir,
Thank you very much for your clarification and immediate reply.
Now I understood.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 September 2023 You are welcome...
....

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