Dear All,
What should we cover the defination of " gift or voucher or token " received by the employees for determination of perks?
Thanks
Parmod
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 24 February 2010
Rule 3(7)( IV) of the Income-Tax rules relating to valuation of perquisites provides that:
“the value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer , who is not liable to pay Fringe Benefit Tax (FBT) shall be determined as the sum equal to the amount of such gift.
However, where value of such gift, voucher or token, as the case may be, is below Rs 5,000 in the aggregate during the previous year, value of perquisite shall be taken as nil.”
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 24 February 2010
^ provided that gift should be in kind not in cash or other monetary things!
if it is in cash/cheque then whole amount of gift recd in monetary items is taxable as perquisite.
GAGAN
( )
(119 Points)
Replied 25 February 2010
why we dnt take revenue exp in sec 35AD which was introduce in finance act 2009
CAclubindia
