As per Section 192 an option is given to the employer to pay tax on the whole or part value of perquisite (not provided for by way of monetary payments), on behalf of any employee, without making any deduction from the income of the employee.
The employer shall continue to have the option to deduct the tax on whole or part of such income.
Various sections also have been proposed to give concessional effect to this provision by granting credit to the employee in respect of tax so paid by the employer on behalf of the employee. Further such tax so paid would not be treated as taxable income in the hands of the employee by virtue of Section 10(10CC).
Thus, the tax so paid by the employer on behalf of the employee in the nature of perquisites (not provided for by way of monetary payment) would not be added to the income of the employee.