Please can you advise me if car & House is provided to MD, it has to be added as perk in the MD's salary & TDS has to be deducted as per his slab?
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Is house & car provided to md taxable as perk
Replies (2)
Of course, house shal b added to the salary of evry employee nd since md is a specified employe car provided to him shal also b taxable..
The provision of Car by the company to its MD is a taxable perquisite except where such car is provided only for bringing him from residence to office and coming back and nothing else.
Similarly, rent free / concessional rent accomodation provided by the company to its employee are deemed as a perquisit liable to tax.
In both the cases, the value of perquisite has to be found out and added in teh salary of the employee for TDS purpose.
Alternatively, the company can itself pay tax on the value of perquisite u/s 192(1A) without deducting tax from the employees salary, and the same can be claimed as TDS by the employee on the value of perquisite as his income. Important thing is, the tax paid by company on employee's behalf on perquisite is an exempted income in the hands of employee ..!!
- Ashish
(8802999731)
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