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Treatment of compensation paid by employee to company

kumar (accoutant) (36 Points)

29 June 2017

Hi,

One of my friend lost his Company laptop..and he paid the total amount to company..

My Question was

Can he claim the amount while filing incometax return..if yes under which head?

Help me..

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6 Replies

Poltu Ghosh (Job) (1865 Points)
Replied 29 June 2017

No benefit to your friend. You may get shock after knowing that it will be treated as prerequisite. Instead of getting any benefit he may have to pay tax on computed value being perquisite

Deval M. Thakkar (Student CA Final and Article Assistant a) (368 Points)
Replied 29 June 2017

no the same can not be taken as benefit...but as per my opinion it is not perquisites...as it is not given to employee for his benefit....it is given for official use

Poltu Ghosh (Job) (1865 Points)
Replied 29 June 2017

Please refer Rule 3 (7)(viii) of IT Rules regarding perquisite valuation on transfer of movable asset including computer / laptop by employer to employer. It is immaterial whether employee is using for personal purpose or official purpose. Once the ownership is passed on the employee the petwuisite will trigger.

Deval M. Thakkar (Student CA Final and Article Assistant a) (368 Points)
Replied 30 June 2017

as employee had paod compensation it is clearly evodent that ownership is not transferred....if ownership had been transferred employee had not paid compensation for lose of laptop