24 February 2020
Any employee purchase TV in Feb 2020 (FY 2019-20), and submit the bill to employer (Bill date 14.02.2020), now employer follows the procedure & expected to pay amount to him in April 2020 (FY 2020-21), now for calculation of Tax on perquisite, which financial year for employee should be considered. i.e. FY 2019-20 (Purchase by Employee & submitted to Employer) or FY 2020-21 (Reimbursement by employer to employee).
Also tell weather employer needs to create provision on March 31 or not.
25 February 2020
please check the policy of your company. Normally the accounts department makes the calculations as of 31/01/ and then they are bit reluctant to change this estimate as on 31/01. In your case, there is no harm in taxing the perquisite in the financial year 2019-20, but as i said it could be the problem of account department that they are showing it in the next year. Please check it with your account department.
CAclubindia
