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Perks Exempted fromTax for all Employees and Not Added in Salary Income

 

Value of following benefits is not added in salary income

A-I. Free medical facilities or reimbursement of medical expenditure :
Exemption under this section shall be allowed for treatment of self, wife, dependent children, dependent parents and dependent brothers and sisters.

Medical Facilities in India :

  1. If treatment was taken from a hospital maintained by employer

  2. If treatment is taken from a hospital maintained by Central, State Govt., local authority or a hospital is approved by the government for the purpose of medical treatment of its employees          

  3. If treatment is taken in respect of prescribed diseases or ailments specified in Rule 3A, in any hsopital approved by the CCIT

  4.  In case treatment is taken from a private or unrecognised hospital, the benefit is exempted up to 15,000 p.a.

  5. In case employer, under a scheme approved by the Central Govt. pays medical insurance Premium of employees :

  6. In case any health insurance premium is paid by employer to General Insurance Corporation under notified scheme (Mediclaim U/s 80D) to insure the health of its employees and members of their families :

Fully exempted

 

Fully exempted

 

 

Fully exempted

 

Fully exempted

 

Fully exempted

 

 Fully exempted

 

Medical facilities outside India

  1. If the employee or any member of his family goes outside India for treatment, medical expenses paid or reimbursed by employer

Fully exempted but to the extent it is permitted by the Reserve Bank of India.

 

  1. Expenses on the stay of the patient and one attendant paid or reimbursed by employer

  2. Expenses incurred by employer on the travelling to the foreign country of the patient and one attendant without including therein the said expenditure total

A-2.  Free refreshment supplied by employer to its employees during office hours in office premises except free meals.

A-3. Free meals given at remote area or offshore installation shall be.

A-4. Free recreational facilities provided by employer to its employees.

A-5.     Provision of telephones including mobile phones given by the employer to employee to facilitate the business of the employer.

A-6. Free education which is provided by employer from its own resources who is engaged in such business provided value of such benefit does not exceed 1,000 p.m. per child.

A-7. Cost of refresher course attended by employee met by employer. In case employer meets expenditure of higher education or training whether in India or abroad.

A-8. Any rent-free residential accommodation to Judges of High Court or Supreme Court.

A-9. Goods sold by an employer to his employees at concessional rate. The amount of concession given.

A- 10. Free ration received by members of armed forces.

A-11. Perquisites allowed by Govt. to its employees posted abroad.

A- 12. Rent free house given to an officer of Parliament, a Union Minister, and leader of opposition in Parliament.

A- 13. Conveyance facilities to Judges of Supreme Court and High Court.

A- 14. Free conveyance provided by employer to employees for going to or coming from place of employment.

A-15. Any amount contributed by employer towards pension or deferred annuity scheme.

A- 16. Employer’s contribution to staff group insurance scheme.

A-17. Computers, laptops given to [no transferred] an employee for official / personal use.

A-18. Transfer of a moveable asset [computer, car or electronic items] without consideration to an employee after such asset had been used by the employer for more than 10 years.

A-19. Accident insurance premium paid by employer for his own benefit. In case such premium is paid for an insurance whose benefit is to accrue to the employee, it will be taxable.

A-20. Interest free loan

  1. In case total amount of all loans taken by an employee from his employer does not exceed ` 20,000

  2. In case loan is taken for treatment of notifies illness [Aids, cancer, mental disorders, renal failure, hemophilia, the lessemial and no claim is received from insurance company .
    In case any insurance claim is received, such amount shall be treated as loan and difference between rate of interest charged by employer and rate fixed by SBI on 1-4-20 13 shall be taxable.

  3. In case loan is taken for any other purpose and rate of interest is equal to or higher than the rate prescribed by SBI on 1-4-2013.

A-21. Income tax on perquisites if paid by employer.

A-22. Any unauthorised use of a benefit.

Fully exempted but again up to the amount permitted
by RBI.

Fully exempted provided gross income of the employee does not exceed ` 2,00,000 p.a. without including therein the said expenditure

Fully exempted

 

Fully exempted

 

Fully exempted

Fully exempted

 

Fully exempted

 

 

Fully exempted

 

Fully exempted

 

Fully exempted

 

Fully exempted

Fully exempted

 

Fully exempted

 

Fully exempted

Fully exempted

 

Fully exempted

 

Fully exempted

Fully exempted

 

Fully exempted

 

Fully exempted

 

 

 

Fully exempted

 

Fully exempted

 

 

 

 

Fully exempted

 

Fully exempted

Fully exempted

 

Taxation of Employee’s Stock Option (ESOPs)

Since FBT has been abolished, so w.e.f. assessment year 2010-11 the value of this benefit will be taxable as perquisite in the hands of the employee.

 
More.. Topics ... @ ' SALARY'
Salary-Definition & Meaning

Computation of Salary Income

Definition of Word ‘Salary’ [ Section 17(1)]

Section-15 : List of Incomes Chargeable to Income Tax under the head ‘ SALARIES’

Important Points / Characteristics for Computing Salary Income

Provident Fund

Treatment of Provident Funds (PF) for Computing Salary Income

Taxable Portion of annual accretion to RPF [Section 17(1)(vii)]. for Computing Salary Income

Transferred Balance from URPF to RPF [Section 17(1)(vii] for Computing Salary Income

Refund from Provident Fund [Section 17(3)(ii)] for Computing Salary Income

New Pension Scheme [ NPS] for Central Government and other Employees joining new jobs on or after 1-1-2004 for Computing Salary Income

 
Allowance [ Section 17(3)]

Allowance [ Section 17(3)] – for Computing ‘Salary’ Income

Fully Exempted Allowances for Computing ‘Salary’ Income

Fully Taxable Allowances for Computing ‘Salary’ Income

House Rent Allowance (HRA) for Computing ‘Salary’ Income

Allowances covered u/s 10 (14) for Computing ‘Salary’ Income

Meaning Of Salary For Different Purposes
PERQUISITES [Section 17(2)]

Meaning and Types of Perquisites [ Section 17(2)]

Taxability of Perquisites for Computing Salary Income

Perks Exempted From Tax for all Employees and not added in Salary Income

Rent Free House [Section 17(2)(i) Rule 3(1)]

Rules Regarding Calculation Of Value Of Rent Free House

Valuation Of Rent Free Accomodation (Unfurnished & Furnished)

Valuation of Rent Free Accommodation Provided as Concessional Rent [Sec. 17(2)ii)]

Obligation of Employee of Rent Free House met by Employer [Section 17(2)(iv)]

Sum payable by the Employer directly or through a fund to effect an assurance / an annuity [Section 17(2)(v)]

Any specified security or sweat equity shares allotted or transferred to employee [Section 17(2)(vi)] [ w.e.f. 1-4-2009]

Contribution to an Approved Superannuation Fund by the Employer [Sec. 17(2)(vii)]

Interest free or Concessional loan from employer [Rule 3(7)(i)]

Valuation of Perk in respect of Travelling, Touring, Accommodation

Food or Beverages Facility by Employer to Employee

Valuation of Perquisite in respect of Gift Voucher or Token

Valuation of Perquisite in respect of Credit Card

Valuation of Perquisite in respect of Club Facility

Use of Moveable Assets by Employer to Employee

Transfer Of Moveable Assets to the employee

Meaning of Specified Employee for Taxable Perquisites [Section 17(2)(iii) Rule 3]

Valuation of Perquisite of Motor Car or any Other Automotive Conveyance [Rule 3(2)]

Perquisite of Free domestic servants [Rule 3(3)]

Perquisite in respect of free supply of gas, electric energy, water supply [Rule 3(4)]

Free Educational Facilities to Children of Employee’s Household [Rule 3(5)]

Facility of Free or Concessional Private Journey to an employee by the employer engaged in the carriage of passengers or goods [Rule 3(6)]
PROFITS IN LIEU OF SALARY [17(3)]

Receipts treated as Profit in Lieu of Salary [ Section 17(3)]

Leave Travel Concessional (LTC) Assistance [Section 10(5)]

Death-Cum-Retirement Gratuity [Section 10(10)]

Non-Government employees receiving gratuity under payment of Gratuity Act, 1972 [POGA]

Non-Government Employees receiving gratuity (Not covered under payment of Gratuity Act)

PENSION [Monthly and Commuted] for Computing Salary Income

Leave Encashment [Section 10(10AA)] for Computing Salary Income

Any amount received as compensation on termination of employment [Section-10B]

Any amount received on voluntary retirement [Section 10(10C)]

Payment received from Recognised Provident Fund [Section 10(12)]

Any payment from Superannuation Fund [Section 10(13)]

 
DEDUCTIONS OUT OF GROSS SALARY [ Section-16]

Entertainment Allowance to Government Employees [Section-16(ii)]

Tax on Employment Under Section - 16(iii)

 
DEDUCTIONS U/S 80C OUT OF GROSS TOTAL INCOME

Section - 80C : Deductions from Gross Total Income (GTI) in case of Individual and HUF

Qualifying Amount ( Q.A.) for Deduction U/s 80C

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