Transfer of movable asstes by employer

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2012 What is a tax treatment when an employer transfer an Air Conditioner to his employee on the occasion of his retirement. An Air Conditioner was purchase by Employer in 1991 for Rs 49000.

This Query is Reff to Q:53-E8 Page 179 from "Student Guide of VK Singhania 12-13".

I added 10% actual cost of AC i:e 4900/- in the salary of Assessee but its wrong and in Solution it was not added and show Exempt from tax, Why???

Please guide me with complete explanation.....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 June 2012
In which year ... you have solved the query ????
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While the asset is used by the employee, you may add 10% of the cost in perquisite. In ten years of its use, almost the cost of entire asset, would have been taxed in the hands of the employee.
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Movable assets older than 10 years are not required to be added in the hands of the employees as a perquisite, when such old assets are given to them on permanent basis.
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Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2012 After 10 years it will not treated as a Perquisite even when employer sell it to employee???

And it employer not sell it to employee and just give them an asset for domestic use??? Even then is above mention rule is apply???

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