Salaried
Employee may be confuse
to decide how to get tax exemption benefit of their investments and if saving Tax scheme funds under Chapter VIA during the assessment year 2013-14. The
salaried Employee other than Taxpayee (Assessee) who are the free from Taxfree perquisites
may deducted Tax as TDS in salary,
so we suggest them all Tax Free Perquisites are as follows:
1. Medical Facility or Medical Reimbursement:
Medical Facility : The value of any medical treatment provided to an
employee or any member of his family in a hospital, dispensary or a
nursing home maintained by the employee shall be a tax free perquisite.
Medical Reimbursement : Any sum paid by the employer in respect of any
expenditure incurred by the employee on his medicaltreatment or
treatment of any member of his family subject to maximum of Rs. 15,000
in the previous year.
2. Recreational Facilities : Any
recreational facility provided to a group of employees (not being
restricted to a select few employees) by the employer is not taxable.
3.
Training of Employees: Any expenditure incurred by the employer, for
providing training to the employees or by way of payment of fees of
refresher courses attended by the employees.
4. Use of health club, sports and similar facilities provided uniformly to all employees by the employer.
5. Expenses on Telephone, including a mobile phone, actually incurred on behalf on the employee by the employer.
6.
Employer’s Contribution: Employer’s contribution to superannuation fund
of the employee or provided such contribution does not exceed Rs.
1,00,000 per employee per year.
7. The premium paid by
the employer on an accident policy taken out by it in respect of the
employee would not be a perquisite. [CIT v Lala Shri Dhar (1972) 84 ITR
192 (Del) and CIT v Vinay Bharat Ram (1981) 129 ITR 128 (Del)].
8.
Motor car provided by the employer to the employee or expenses incurred
by the employer in connection with motor car belonging to the employee
(for purposes other than exclusively for personal purposes) shall be a
tax free perquisite in the hands of the employee.
9.
Amount given by the employer of assessee to assessee’s child as
scholarship is exempt under section 10(16). [CIT v B.L. Garg (2006) 155
Taxman 189 (All)]
10. Food and Beverages provided to Employees: The following shall be a tax free perquisite in the hands of the employees-
free food and non-alcoholic beverages provided by the employer to his employees during working hours:
(a) at office or business premises or
(b) through paid vouchers which are not transferable and usable only at eating joints.
Provided the value of such meal is upto Rs. 50 per meal.
(ii) Any tea or snacks provided during working hours.
(iii) Free food and non-alcoholic beverages during working hours provided in a remote area
or offshore installation.
11.
Loans to Employees : - In the following cases the value of benefit to
the assessee resulting from the provision of interest free or
concessional loan shall be nil :
(a) where the amount of loans are petty, no exceeding in the aggregate Rs. 20000;
(b)
Loans made available for medical treatment in respect of disceases
specified in rule 3A of the Income-tax Rules. However, the exemption so
provided shall not apply to so much of the loan as has been reimbursed
to the employee under any medical insurance scheme.
12.
Perquisites provided outside India : Perquisites provided by the
Government to its employees, who are citizens of india for rendering
services outside India, are not taxable. [Section 10(7)].
13.
Rent Free House/Conveyance Facility: Rent free official residence and
conveyance facilities provided to a Judge of the Supreme Court/High
Court is not a taxable perquisite.
14. Specified Perquisite allowed to certain Persons:
(a) Specified perquisites allowed to Judges of the Supreme Court, Chief Election Commissioner, Election Commissioner.
(b) Chairman or retired Chairman, member or a retired member of U.P. S.C.
are not taxable perquisites.
15.
Residence to officials of Parliament etc. :- The Rent Free furnished
residence (including maintenance thereof) provided to an officer of the
Parliament a Union Minister or Leader of Opposition in Parliament, is
not a taxable perquisite.
16. Accommodation in a Remote
Area : - The accommodation provided by the employer shall be a tax free
perquisite if the accommodation is provided to an employee working at
mining site or an onshore oil exploration site or a project execution
site, or a dam site or a power generation site or an offshore site which
-
(a) being of a temporary nature and having plinth
area not exceeding 800 square feet, is located not less than eight
kilometres away from the local limits of any municipality or a
cantonment board; or
(b) is located in a remote area.
17.
Educational Facility for Children of the Employee: where the
educational institution itself is maintained and owned by the employer
and free educational facilities are provided to the children of the
employee or where such free educational facilities are provided in any
institution by reason of his being in employment of that employer, there
shall be no perquisite value if the cost of such education or the value
of such benefit per child does not exceed Rs. 1,000 p.m.
18. Use by the employee or any member of his household of laptops and computers belonging to the employer or hired by him.
19. Leave Travel Connection will be discussed in detail later.
20.
Tax paid by the Employer on Non-Monetary Perquisites : Tax paid by the
employer on non-monetary perquisites of the employee shall be exempt in
the hands of the employee. [Section 10(10CC)]
