A. Exempted Perquisites:
1. Leave Travel Concession subject to conditions & actual spent only for travels.
2. Computer/ Laptop provided for official / personal use.
3. Initial Fees paid for corporate membership of a club.
4. Refreshment provided by the Employer during working hours in office premises.
5. Payment of annual premium on Personal Accident Policy.
6. Subscription to periodicals and journal required for discharge of work.
7. Provision of Medical Facilities.
8. Gift not exceeding Rs. 5,000 p.a.
9. Use of Health Club, Sports facility.
10. Free telephones whether fixed or mobile phones.
11. Interest Free / concessional loan of an amount not exceeding Rs.20,000 (limit not application in the case of medical treatment)
12. Contribution to recognised Provident Fund / approved super annuation fund, pension or deferred annuity scheme & staff group insurance scheme.
13. Free meal provided during working hours or through paid non transferable vouchers not exceeding Rs. 50 per meal or free meal provided during working hours in a remote area.
The value of any benefit provided free or at a concessional rate (including goods sold at concessional rate) by a company to the Employees by way of allotment of shares etc., under the Employees stock option plan as per Central Government Guidelines.
B. Taxable Perquisites:
1. Rent Free Accommodation
2. Provision of Motor Car or any other Conveyance for personal use of Employee.
3. Provision of Free or Concessional Education Facilities.
4. Reimbursement of Medical Expenditure.
5. Expenditure on Foreign Travel and stay during medical expenditure.
6. Supply of Gas, Electricity & Water.
7. Sale of an Asset to the Employee at concessioanal price including sale of Share in the Employer Company.
C. Perks Exempted for Employees but Taxable for Employer under Fringe Benefit Tax.
Value of the following benefits is not taxable in the hands of an employee. The employer has to pay tax on deemed income calculated as percentage of expenditure incurred.
- Any free or concessional ticket provided by the employer for private journeys of his employee or their family members
- Any contribution by the employer to an approved superannuation fund for employees;
- Expenditure incurred on entertainment ;
- Expenditure incurred on provision of hospitality of every kind by the employer to any person.
- Expenditure incurred on conference like conveyance, tour & travel (including foreign travel) , on hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference.
- Expenditure incurred on sales promotions including publicity ;
- Expenditure incurred on employee’s welfare ;
- Expenditure incurred on conveyance
- Expenditure incurred on Hotel, Boarding & Lodging facilities ;
- Expenditure incurred on Repair, Maintenance of Motor Cars and the amount of Depreciation there on.
- Expenditure incurred on use of telephone and Mobile Phones.
- Expenditure incurred on maintenance of any accommodation in the nature of Guest House other than used for Training purpose.
- Expenditure incurred on Festival Celebrations.
- Expenditure incurred on use of Health Club and similar facilities.
- Expenditure incurred on gifts ;
Fringe Benefit Tax (FBT) is not applicable in case of following type of employers.
- An Individual or a sole Proprietor
- A Hindu Undivided Family
- A Political Party
- A person whose income is exempt u/s 10(23c)
- A Charitable Institution registered u/s 12AA.
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