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prquisites

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This query is : Resolved

Ram Prasad Sharma (Querist)
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15 September 2009 Respected members,
We run school under educational trust.now my query is that we waved off half fee for child of our employee's (both teaching & non-teaching). Is it fall under perquisites? Do we must add waved off fee amount in their Income(Salaried) and what will the tax rate? please revert back. Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 September 2009 Educational facilities provided in the Institute of employer are to be considered as under, for the purpose of perquisites in the hands of employees-
Cost of Education or value of such benefits per month per child is more than Rs 1000/- say Rs 2500/; then 2500-1000
=1500 will be perquisite. Out of it if half of the fee is recovered from the staff member then 1500-1250=250 will be perquisite. If such benefit is 1600/-
nothing can be included as balance Rs 800 is less than Rs. 1000/. Upto Rs 1000/ benefit even if u are not charging from them, then also it will not be added as perquisite.
Perquisites are added with salary and other taxable allowances and as such rate applicable to Salary will be the TDS rate.

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