Perquisite Meaning in Income Tax:-
Perquisitesare those extra payments which are received by an employee from the employer above the salary. It may be defined as any casual benefit attached in addition to salary or wages. It also describes something that benefits a man by going into his own pocket. Perquisites may be offered in cash or in kind.
(अनुलाभवे अतिरिक्त भुगतान हैं जो नियोक्ता सेकिसी कर्मचारी को वेतन सेऊपर प्राप्त होते हैं। इसे वेतन या मजदूरी केअलावा किसी भी आकस्मिक लाभके रूप में परिभाषित किया जा सकता है।यह किसी ऐसी चीज का भी वर्णनकरता है जो किसीव्यक्ति को अपनी जेबमें जाने से लाभान्वित करतीहै। अनुलाभ नकद या तरह सेदिए जा सकते हैं।)
Taxable to all employees :
- Rent free accommodation
- Club fee payments
- Movable assets
- Concession in accommodation rent
- Interest-free loans
- Educational expenses
- Insurance premium paid on behalf of employees
- Any other fringe benefit
Taxable to specified employees:
- Free gas, electricity etc. for domestic purpose
- Transport facility
- Concessional educational expenses
- Payment made to gardener, sweeper and attendant.
- Director employee
- Substantial interest
- Salary in excess of rs. 50,000
- Medical facility
- Education facility to family member of the employer
- Facility of car
Tax free or Exempted perquisite:
- Medical benefits
- Health Insurance Premium
- Leave travel concession
- Staff Welfare Scheme
- Computer/ laptop etc. for personal use.
- Payment of annual premium of personal accident policy.
- Gift not exceeding rs. 5,000 p.a
- Use of a health club and sport facility.
- Free telephone or mobile phone
- Concessional loan not exceeding rs. 20,000
- Free meals should not exceed rs. 50 per meal during working hours.
- Medical reimbursement up to rs. 15,000
- Free recreational facilities
- Free ration payment to the member of armed force
- Free residence facilities to judge of supreme court or high court
- Rent free house given to office of parliament , a union minister, and leader of opposition parties
- Tax on perks paid by the employer
- Scholarship payment to the children of the employee
From the above discussion it can be concluded that the perquisite meaning in income tax is to be given to employees in addition to their salary. In simple terms it is an extra payment made to employees. It is given for the purpose of motivation to the employee so that the organisation can achieve its goals easily.
It can be classified in income tax purpose into 3 types that are
1) taxable perquisite to all employees,
2)taxable perquisite to specified employee and
3) exempted taxable.
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