Query of income tax

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Bhavik Sankhla (Querist)
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16 February 2015 what is the difference between 1. perquisites taxable in case of all employees and 2. perquisites taxabla in case of specified employees ?? I am not able to understand difference between all employees and specified employees

c.bakshi

c.bakshi (Expert)
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17 February 2015 SPECIFIED EMPLOYEE:

1. A Director Employee is a specified employee in the company in which he is a Director, irrespective of the fact whether he was full time or part time.

2. An Employee having Substantial Interest, i.e., 20 % or more of Voting power in the Employer company

3. An Employee drawing Salary in excess of Rs. 50,000/-, where salary includes, All non monetary benefits + Only taxable part of Allowances Less Deduction for Entertainment Allowances and Professional tax.

the person who does not fulfilled any of the above condition is covered under the meaning of Ordinary employees
a. Sweeper, gardener or watchman provided by the employer
b. Free Supply of Gas, Electricity or Water
perq is not taxable to ordinary employee

and Who cover under the above provisions is called specified employees and point a and b is taxable only in case of specified employee

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