Is a perquisite taxable in case of all employees?

According to the Finance Act, 2005, perquisites are taxed by the government in case these perks are provided or are deemed to be provided to employees by employers. The rate at which perquisites are taxed is 30% of the value of fringe benefits.

What are the examples of perquisite?

Perquisites can be simple as company car, fuel reimbursement etc. or may also include interest-free loan, medical facilities, credit cards, accommodation sponsored by the company, etc.

What is perquisite tax India?

Ideally, perquisites are taxed at the rate of 30% of the entire value of the availed fringe benefits. Notably, the perquisite tax is paid by the employers who provide these above-mentioned benefits to their employees. They can be either a firm, a company, a body of individuals or an association of individuals.

How perquisites are shown in income tax?

Form 12BA Applicability Taxation on income has the details of Form 16. However, Form 12BA adds to the details of Perquisites provided by the employer to employee. However, it is important to understand that Form 12BA is applicable for any employee regardless they receive any perquisites or not.

How is perquisite tax calculated?

Calculation of TDS/tax on perquisites: Tax on total salary (including 4% health and education cess) = Rs 75,400. Average rate of tax [ (75,400/800000) x 100 ] = 9.4% Tax payable on Rs 90,000 = (9.24% of 90,000) = Rs 8316. Amount required to be deposited each month = Rs 693 (Rs 8316/12)

What is the meaning of perquisites?

Definition of perquisite 1 : a privilege, gain, or profit incidental to regular salary or wages especially : one expected or promised. 2 : gratuity, tip. 3 : something held or claimed as an exclusive right or possession.

Is perquisites part of salary?

Perquisites are included in salary income only if they are received by an employee from his employer (maybe former, present or prospective). Perquisites, received from a person other than employer, are taxable under the head “Profits and gains of business or profession” or “Income from other sources”.

How can I avoid perquisite tax?

An insurance premium paid by an employer on an accident policy taken out for the employee is a tax-free perquisite. Also, employers contribution to the superannuation fund of the employee provided such contribution does not exceed Rs. 1,50,000 per employee per year can be treated as a tax-free perquisite.

What are tax free perquisites?

What is tax paid by employer on non monetary perquisite?

As per Section 10(10CC), tax paid on such non-monetary perquisites by the employer will be exempt from tax in the hands of the employee. The tax on non-monetary perquisites paid by the employer is not a deductible business expenditure in the hands of the employer by virtue of Section 40(a)(v).

What is the meaning of non-monetary perquisites?

Non-monetary benefits are those that are not provided by way of monetary payments to the employees. a) Residential Accommodation provided by Employer: i) Rent free unfurnished Accommodation:- Following are added to salary as perquisites: Population of city as per 2001 census.

What is tax paid by employer on non-monetary perquisite?

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