Salary
This query is : Resolved
11 January 2013
what is the difference b/w perquisites and fringe benefits ?
11 January 2013
Hi
Perq. and fringe benefits are quite similar as both terms are used for the benefits provided by the employer to the employee during employment along with cash wages or salary.
Expense done by employer on the entertainment facilities of employee counts under fringe benefits while free education facility provided to employee's children came under perquisites.
The basic difference between fringe benefits & perquisite is that while fringe benefits are not clubbed with salary & the tax on the same is paid by the employter, the perquisites are clubbed under the head "income from salary" & tax accordingly to employee.
Thus while fringe benefits are taxed in the hands of employer, the perquisite are taxed in the hand of employee himself.
For definition & meaning refer: https://www.scribd.com/doc/16160593/Perquisites-and-Fringe-Benefits
Hope your query is resolved.
Thanks!!
Perq. and fringe benefits are quite similar as both terms are used for the benefits provided by the employer to the employee during employment along with cash wages or salary.
Expense done by employer on the entertainment facilities of employee counts under fringe benefits while free education facility provided to employee's children came under perquisites.
The basic difference between fringe benefits & perquisite is that while fringe benefits are not clubbed with salary & the tax on the same is paid by the employter, the perquisites are clubbed under the head "income from salary" & tax accordingly to employee.
Thus while fringe benefits are taxed in the hands of employer, the perquisite are taxed in the hand of employee himself.
For definition & meaning refer: https://www.scribd.com/doc/16160593/Perquisites-and-Fringe-Benefits
Hope your query is resolved.
Thanks!!
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- ITC BENEFIT ON BROKRAGE PAID
- TDS refund Indemnity Bond
- DUE DATE FOR ITR FILING
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- GST ISD Query on various AMCs
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
