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Perquisite and Section 56(2)(x)

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Indira

1401 Points Posted on 14 February 2023

If an employer is providing porfolio management service to employee free of cost or for a nominal fee, is it taxable as perquisite. If yes what is the value of perquisite. Also will it come under the scope of Section 56(2)(x) of Income Tax Act,1961 under income from other sources head?

Thanks

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Quick Summary

This discussion explores whether providing portfolio management services to employees at no or a nominal cost constitutes a taxable perquisite. It also questions the applicability of Section 56(2)(x) of the Income Tax Act, 1961, under the 'income from other sources' head. The consensus suggests Section 56(2)(x) is not applicable, and the perquisite's value should be based on the fair market value or the price the employer charges their clients.