Income Tax Query

Taxable Perquisites

The following perquisites are taxable in the hands of all employees:

1.    Rent free accommodation furnished or unfurnished

2.    Hotel accommodation provided to employee (Hotel accommodation provided for a period of 15 days or below in connection with transfer from one place to another is exempt but the benefit above 15 days is taxable)

3.    Furnished or unfurnished accommodation provided at concessional rent.

4.    Services of sweeper, gardener, watchman or personal attendant by the employer where such services are engaged by the employee and salary is paid by the employer.

5.    Supply of gas, electric energy or water for household consumption of employee where the connection is taken by the employee and bills are paid by employer.

6.    Provision of free or concessional educational facilities for any member of household of the employee without charge or with charge where such payment is made by the employer on behalf of the employee.

7.    Motor car/conveyance owned by the employee and bills paid by employer.

8.    Any sum paid by the employer whether directly or through a fund to effect an assurance on the life of the assessee or to effect a contract for an annuity (except in case of contribution to recognised provident fund or approved superannuation fund or a deposit linked insurance fund established under section 3G of Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or as per section 6C of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952)

9.    Value of any specified security of sweat equity shares allotted or transferred directly or indirectly by the employer or former employer, free of cost or at concessional rate to the assessee.

10. Amount of any contribution to an approved superannuation fund by the employer to the extent it exceeds Rs.1,00,000.

11. Interest free or concessional loan to employee or any member of his household.

12. Allowing use of movable asset other than laptop or computer to the employee or member of his household.

13. Benefit arising from transfer of any movable asset to any employee or any member of his household.

14. Holiday home facility provided by the employer

15. Free food and non-alcoholic beverages provided by the employer.

16. Credit card facility (including addon card) provided by employer.

17. Club facility provided by employer.

18. Reimbursement of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family in case the expenses exceed Rs.15000 per year. (In case of hospital maintained by the government for prescribed diseases or in case of hospital owned by the employer for any treatment, it is not taxable in the hands of the employee as a perquisite). Note: From the assessment year 2019-20, the reimbursement of actual medical exempt up to Rs.15000 is also not exempt. Hence, reimbursement of actual medical expenditure is taxable without any limit.

19. Any other benefit not covered by the above, if bills are issued in the name of the employee and they are paid by the employer.