Table of Contents
- 1 What is a perquisite give some examples of perquisite?
- 2 What is included in perquisites?
- 3 What is salary includes for purpose of taxability of rent free accommodation?
- 4 Are hotel accommodations tax deductible?
- 5 Which item is related to taxable perquisite?
- 6 Which of the following is taxable perquisite?
What is a perquisite give some examples of perquisite?
Perquisites are emoluments or benefits received from an employer, in addition to salary. For example, Rent-free accommodation. Free electricity, gas and water supply. Free domestic servant provided/paid for by the employer.
What is included in perquisites?
Broadly, “perquisite” is defined in the section 17(2) of the Income-tax Act as including: 1) Value of rent-free or concessional rent accommodation provided by the employer. 3) Any sum paid by employer in respect of an obligation, which was actually payable by the assessee.
What is salary includes for purpose of taxability of rent free accommodation?
Definition of Salary Salary for purpose of Taxability of Rent free accommodation shall include = Basic pay+ Dearness Allowance/pay (if forms part of superannuation or retirement benefits) + Bonus + Commission + Fees + All taxable allowances + All monetary payments chargeable to tax, from one or more employers.
Are perquisites taxable?
How are Perquisites taxed and who pays that Tax? 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.
Which are the perquisites exempt from income 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.
Are hotel accommodations tax deductible?
Lodging, meals and tips are deductible The IRS allows business travelers to deduct business-related meals and hotel costs, as long as they are reasonable considering the circumstances—not lavish or extravagant.
“Perquisite” is defined in the section 17(2) of the Income tax Act as including: (i) Value of rent-free/accommodation provided by the employer. (ii) Value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer.
Which of the following is taxable perquisite?
Taxable Perquisites: Some of the perquisites that are taxable in nature are rent-free accommodation, supply of gas, water and electricity, professional tax of employee, reimbursement of medical expense, and salary of servant employed by employee.
Is accommodation provided by employer taxable?
The provision of living accommodation for an employee and/or members of the employee’s family or household gives rise to a taxable benefit unless the accommodation in question is exempt. Where provision of the accommodation is not within the scope of the exemption, a tax liability arises.
What are fully exempted perquisites?
The following are exempt:(i) Value of medical treatment in a hospital maintained by the employer to the employee or any of his family members(ii) payment by the employer for treatment in a Government Hospital(iii) payment by the employer for treatment of prescribed diseases in any approved hospital(iv) mediclaim …