Hire purchase V/s lease

Any benifit given by the employer to its employee in the form of paying of any liability of the latter tantamounts to perquisite in the hands of the employees.........such perquisite is salary in the hands of the employee u/s 17(2) as equal to the amout borne by the employer and taxable accordingly........

Sec.192(1A) gives the employer the option to pay the tax on such perquisite himself and issue Form 12BA in which the value of such benifit is given alongwith Form 16...........

The amount is taxable in the hands of employee and if the employer bear such tax, the employee can take credit of such tax paid u/s 199(2)..............

For more expalantion, pls Refer Sec.17(2).., 192(1A)..., 199(2)..., Rule 26A(2)(b)..., Form 12BA....