Payment or reimbursement of fees of school, college, etc. In case school or college fees of family members of employee is paid by the employer directly to the school or college or fee paid by the employee is reimbursed by the employer, it is a taxable perquisite whether the employee is a specified or non-specified type of employee.
Educational facilities in a school or college maintained by employer (Employer’s Institute).
In case school, college etc. is run or maintained by the employer and free educational facilities are given to the children of employee or any other member of his household, the valuation of this perk is to be calculated as under :
Free educational facilities to employee’s own children :
Where the cost of education in that school or college or in a similar type of institution in or near the locality does not exceed 1,000 p.m., the taxable value of perk shall be taken as nil.
Where the cost of education exceeds 1,000 p.m. the taxable value of perk shall be the cost to the employer minus (—) 1,000 and (—) any amount paid or received from the employee.
- Free educational facilities to any member/members of employee’s household:
Taxable value of the perk shall be its cost to the employer minus (—) any amount paid by employee or recovered from the employee.
3. The value of this perk is taxable only where the employee falls in a specified category but in case bills are issued in the name of the employee and the same are paid or reimbursed by the employer then the value of this perk is taxable in all cases as the liability of the employee has been met by employer.
Note. Education facility provided to employee is not taxable.