Perquisits

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GIREESHA T L (Querist)
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12 February 2011 In case of employee retired, The assets which are given to employee for his pursonal use, the value of such assets, how will be caluclated for the purpose of determining the Perk value as per income tax act ? and dep willl be caluclated on SLM or WDV ? please guide urgent............

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2011 I. The perquisite in respect of Movable Assets:

1. Electronic Items like Computers

A. Actual cost to the emloyer :100000
B: Deduct the amount in respect of
USE OF THE ASSET BY THE EMPLOYER:

50% for each completed year by Reducing Balance Method (say for 2 completed years)

Ist Year 50000
IInd Yr 25000
--------- ............:75000/

Balance Amount ..................Rs. 25000/
C. Deduct any amount Recovered from Employee say...................10000/

D. Taxable Perquisite will be 25000-10000=Rs. 15000/

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2011 II. The perquisite in respect of Movable Assets:

Motor Car
---------
A. Actual cost to the emloyer :100000
B: Deduct the amount in respect of
USE OF THE ASSET BY THE EMPLOYER:

20% for each completed year by Reducing Balance Method (say for 2 completed years)

Ist Year 20000
IInd Yr 16000
--------- ............:36000/

Balance Amount ..................Rs. 64000/
C. Deduct any amount Recovered from Employee say...................10000/

D. Taxable Perquisite will be 64000-10000=Rs. 54000/

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2011 III. The perquisite in respect of Movable Assets:

Assets other than Motor Car & Computers
---------------------------------------
A. Actual cost to the emloyer :100000
B: Deduct the amount in respect of
USE OF THE ASSET BY THE EMPLOYER:

10% for each completed year of actual cost
(2 completed Years0
Ist Year 10000
IInd Yr 10000
--------- ............:20000/

Balance Amount ..................Rs. 80000/
C. Deduct any amount Recovered from Employee say...................10000/

D. Taxable Perquisite will be 80000-10000=Rs. 70000/

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