Tds
This query is : Resolved
09 January 2016
Dear Sir/Madam,
We need your opinion on the taxability issue of following perquisites / benefits that we provide / have provided to our employees.
1. Marriage Gift to employee in the form of Gift Vouchers
2. Gold Coins on the occasion of Long Service award
3. Contest Prize in the form of Gift Voucher
4. Contest Prize in the form of Cash
5. Reimbursement of Rs.2000/- in Cash to female employees on occasion of Women’s Day.
6. Big Bazar Vouchers of Rs.2000/- on occasion of 20th Foundation day
7. Wall Clock worth Rs.1200/- on occasion of 20th Foundation day
8. Reimbursement for Shoes to the limit of Rs.1500/- once in two years
9. Reimbursement for Raincoat / Umbrella to the limit of Rs.450/- once in two years
10. 1 KG of Dry fruit Box on the occasion of Diwali
11. Uniform Cloth with reimbursement of stitching charges at actual
We have already taken up these points with our Salary Outsourcing agency and in their opinion Point No. 1 to 7 are to be considered for the calculation of annual gift amount.
However we wish to get re-assured in this taxation matter and hence require your valuable opinion on these points.
We wish to know whether each of the above benefit has to be considered as Gift, and to be considered in the total annual gift value out of which Rs.5000/- can be exempted as per rule.
Apart from these we provide following medical and other benefits to the employees.
1. Annual Health Checkup for employee and once in a two year for their family members
2. Annual Mediclaim Policy for the employee and their family members with a cover of Rs.200000/-
3. Subsidized Transport facility for the employees of some of the remote plant locations.
We wish to know whether the above benefits are to be considered as Taxable perks. If Yes, then to what extent or what is the calculation method.
Request you to provide your opinion.
Best Regards,
Nilesh A Daule
We need your opinion on the taxability issue of following perquisites / benefits that we provide / have provided to our employees.
1. Marriage Gift to employee in the form of Gift Vouchers
2. Gold Coins on the occasion of Long Service award
3. Contest Prize in the form of Gift Voucher
4. Contest Prize in the form of Cash
5. Reimbursement of Rs.2000/- in Cash to female employees on occasion of Women’s Day.
6. Big Bazar Vouchers of Rs.2000/- on occasion of 20th Foundation day
7. Wall Clock worth Rs.1200/- on occasion of 20th Foundation day
8. Reimbursement for Shoes to the limit of Rs.1500/- once in two years
9. Reimbursement for Raincoat / Umbrella to the limit of Rs.450/- once in two years
10. 1 KG of Dry fruit Box on the occasion of Diwali
11. Uniform Cloth with reimbursement of stitching charges at actual
We have already taken up these points with our Salary Outsourcing agency and in their opinion Point No. 1 to 7 are to be considered for the calculation of annual gift amount.
However we wish to get re-assured in this taxation matter and hence require your valuable opinion on these points.
We wish to know whether each of the above benefit has to be considered as Gift, and to be considered in the total annual gift value out of which Rs.5000/- can be exempted as per rule.
Apart from these we provide following medical and other benefits to the employees.
1. Annual Health Checkup for employee and once in a two year for their family members
2. Annual Mediclaim Policy for the employee and their family members with a cover of Rs.200000/-
3. Subsidized Transport facility for the employees of some of the remote plant locations.
We wish to know whether the above benefits are to be considered as Taxable perks. If Yes, then to what extent or what is the calculation method.
Request you to provide your opinion.
Best Regards,
Nilesh A Daule
10 January 2016
Each of the 1 to 7 has to be treated as gift and considered n the annual value of Rs. 5000 exempted.
1 Annual health check up of employees is exempted but for the family members it is taxable.
2 Annual mediclaim policy is taxable and can be claimed exemption u/s 80D.
3 Subsidized transport to remote location is exempted.
1 Annual health check up of employees is exempted but for the family members it is taxable.
2 Annual mediclaim policy is taxable and can be claimed exemption u/s 80D.
3 Subsidized transport to remote location is exempted.
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