Perquisites may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. It also denotes something that benefits a man by going into his own pocket; it does not, however cover mere reimbursement of necessary disbursements. Perquisites can be divided in the following 3 categories:
- Perquisites taxable in all cases
- Perquisites not taxable
- Perquisites which are taxable only in the hands of specified Employees.
Non Taxable
- Leave travel concession subject to conditions & only actual amount spent.
- Comp / Laptop for official/personal use.
- Initial fees paid for corporate membership of a
- Refreshment provided during working hours in office premises.
- Payment of annual premium on personal accident policy.
- Subscription to periodicals and journals required for discharge of work.
- Provision of Medical Facilities.
- Gift not exceeding Rs. 5000 p.a.
- Use of health club, sports facility.
- Free telephones: fixed or mobiles.
- Interest free / concessional loan not exceeding Rs. 20,000 (limit not applicable for medical treatment).
- Children Education Allowance (Rs.1 00 p.m. per child — max. 2 children) &
- Hostel Allowance (Rs. 300 p.m. per child — max. 2 children) is exempt.
- Transport Allowance: Rs. 800 p.m.— Rs.1,600 p.m. (If handicapped)
- Fixed Medical Allowance is taxable in the hands of employees however, Medical Faciliües in a private clinic is exempt to the extent of Rs. 15,000 and in government hospitals to any extent.
- Contribution to Medical Insurance Policy by employer is exempt to tax in th hands of employees to any extent.
- Amount spent for providing free educaonal facilies and training of the employee is not taxable in the hands of employees to any extent
- Gift to employees of Movable Assets (other than computer/laptop, electronic items and car) after using for 10 yrs.
- Contribution to recognised Provident Fund / approved super annuation fund, pension or deferred annuity scheme & staff group insurance scheme.
- 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 byway of allotment of shares etc., under the Employees stock opton plan as per Central Government Guidelines
