Tax paid by employer on non-monetary perquisite - should I show it as my income?

Ram (SW engineer) (42 Points)

15 June 2024  

Sorry for the long post.. but to ask the question, I had to explain the context in detail.

My employer has paid tax on my behalf under section 192(A) on some non-monetary perquisites. Let us say the (fictitious) value of perquisites is Rs 2,91,375 and the tax thereon is Rs 1 lakh, which was borne by the employer.  

In the ITR form, I am including the value of perquisites Rs 2,91,375 in gross salary under section 17(2).
I am taking the tax credit for the Rs 1 lakh tax as the employer has included this tax in the tax deposited. I.e. In Form 16, the amount of tax deposited includes the TDS from salary plus the tax paid by the employer on my behalf under section 192(A).

My questions are regarding showing the Rs 1 lakh as income exempt under section 10.

Question 1: Should I include the Rs 1 lakh tax as my income (Gross Salary) and claim it as exempt from tax under "Sec 10(10CC)- Tax paid by employer on non-monetary perquisite"?

Question 2: If answer to Question 1 is "Yes", then how should this income be included in the Gross Salary?

Some of the options available in ITR form under Gross Salary are:


  • Salary as per section 17(1)
  • Value of perquisites as per section 17(2)
  • Profit in lieu of salary as per section 17(3)

Form 16 has not shown this Rs 1 lakh in my income or as exempt under section 10(10CC).