How to report Section 10(10CC) in Form 16?

921 views 4 replies

Shyam Swaran

Developer

9 Points Posted on 23 September 2025

Hi everyone,

I’m a bit stuck on how to handle Section 10(10CC) in Form 16 and could use some guidance.

When an employer pays tax on behalf of an employee (like in tax gross-up cases where the entire tax is paid, or in hypo tax cases where the employer bears the excess tax), should this amount be:

Added as a perquisite under “Value of perquisites under 17(2)”?
If yes, which category of perquisite does it go under in 12BA? (some say “others,” but I’m not 100% sure)
Then, should I show the same amount as an exemption under Section 10(10CC) in Form 16, so that the employee isn’t taxed again?

Basically, I want to make sure the reporting is clean: tax paid by the employer should appear transparently but also be exempted correctly.

If anyone has practical experience preparing Form 16 with these cases (Gross-up or Hypo tax), I’d really appreciate your help! 🙏

Replies (4)

TK TK

Chartered Accountant in practice

6 Points Posted on 23 September 2025

Good day. The same amount of perquisite is not to be claimed us 10 10Ccc,only the tax due on perquisite is to be claimed as exempt. The non monetary perquisite to be added with salary.

Shyam Swaran

Developer

9 Points Posted on 24 September 2025

Okay, that makes sense for cases where tax is covered on a perquisite. But I’m asking about the scenario where the employer covers the tax on the employee’s entire salary, not just the perquisite...