Salary Taxable Perquisite - Sale of Asset and Use of Asset

Analysis of  Classification of the Asset The television will be classified under the head "Other assets" for perquisite purposes, as it is not a computer or a motor car.

Taxable Amount The taxable amount will be the difference between the original cost of the television (₹60,000) and the amount charged from the employee (₹44,000), which is ₹16,000.

Depreciation Treatment Since the asset was sold to the employee, the employer will not be able to claim depreciation on the asset. Time Period for Taxable Amount The taxable amount will be considered for the period the asset was in use by the employee, which is from May 1, 2024, to November 30, 2024. 

The taxable amount will not be divided over the full year, but rather considered for the specific period of usage.

Perquisite Value The total value of the perquisite will be ₹16,000, which is the difference between the original cost and the amount charged from the employee.

1.The televsion will be classified under other assets, correct.

2. time period for usage of asset will be the time asset was used, correct.

3. total Taxable value of perq is incorrect.

4. Correct answer: Since the question comprises of two parts

i. use of asset,

ii. sale of asset

i. Taxable perq for use of asset

= (1.5.24 to 30.11.24) - 10% of Actual cost of asset*No.of days used
=0.1*60000*7/12
=3500

ii. Taxable perq for sale of asset = 10% SLM 

Original cost = 60000

less :

year1 depn = Purchase to year end = (15.12.23 to 31.3.24) = NIL (since less than year, depn will be NIL)
year 2 depn= year start till asset sold = (1.4.24 to 30.11.24) = NIL (since less than year, depn willbe NIL)
WDV=60000
(10% of 60000 = 6000)

i+ii = (6000+3500=19500)

(depn for use of asset is specifically stated that if asse is used for less than a year NIL depn, if it is used more than 1year, depn will be 1yr)

This was the major ambiguity.