Is the tax paid by employer on non monetary perquisite is considered as income and will be included in the salary income of employee?
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Tax paid by employer on non monetary perqusite
Replies (6)
Yes see rule 3(8) for the valuation
No..tax paid by the employer for non-monetery perk will not be included in salary of employee as far as i know and the employer too will not get deduction as an expense..
However i guess it will be taxable in hands of employee if tax paid is more than 50000 under the head i/f/o/s..
Tax on non-monetary perk said by employer on behalf of employee,with effect from a.y 2003-04 a new sec10(10cc)has been inserted which provides that income tax said by employer on behalf of employee on income,being non-monetary perk is not taxable perk..
Tax paid on non monetary perks by the employer is not taxable in hands of employee...it is an exempted perquisite...even if the amount is in excess of Rs. 50,000/- this is because the perks in kind from employer is specifically covered under salary and hence it cannot be covered under the general provision of other sources...
In short "Exempted in hands of employee irrespective of the amount" and "No deduction of that amount will be available to the Employer under Sec 40...
if the employer has paid tax on non-monetory perquisites then no tax will be paid by employee.
the non monetory perquisites will be added in the income of the employee but it will be exempt in his/her hands and no tax will be paid by employee
I SAID ABOUT THIS TOPIC THAT - WHICH IS MY LIBILITY , IS PAID BY ANY OTHER PERSON (EMPLOYER) IS TREATED AS PERQUISITE.
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