Value of Perquisite Tax Borne by Employer

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This query is : Resolved

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This discussion clarifies the tax treatment of perquisites, specifically when an employer bears the tax on benefits like interest-free loans. The key point is that the value of the perquisite itself (e.g., the loan amount) is taxable, while only the tax borne by the employer on that perquisite is eligible for exemption under Section 10(10CC). It advises filing a revised ITR to restrict the exemption solely to the employer's tax contribution, ensuring correct tax compliance.

Praful Mohite

Praful Mohite (Querist)

13 August 2026 In reference to my earlier query-
Some of the assesses have shown Bifurcation of Perquisite.
Other Perquisite-134142/-(284621-150479)
Interest Free or Concessional Loan Rs. 150479/- and show Exemption Under Section 10 (10CC)
Rs. 150479+18043=168522/-
Presuming that Value of Perquisite of IFCL (150479), Tax will be Borne by Employer (Bank).
ITR will be Process Successfully with No Tax Demand. In this whether Revised ITR will be filled by reducing Exemption only up to Rs.18043/- Please advise.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

13 August 2026 Section 10(10CC) Exemption Amount: ₹18,043 (the tax borne by the employer on the non-monetary perquisite).

Perquisite Value (₹150,479): Taxable under Salaries and cannot be claimed as exempt.

Action Required: File a Revised ITR restricting the Sec 10(10CC) exemption strictly to ₹18,043.

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Praful Mohite

Praful Mohite (Querist)

14 August 2026 Revised ITR filled with exemption of Rs. 18043/- only.

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