EXEMPTED PERQUISITES

 

Following perquisites are exempted in hands of employee:

 

1. Tea or snacks: Tea, similar non-alcoholic beverages and snacks provided during working hours.

2. Food: Food provided by employer in working place.

3. Recreational facilities: Recreational facilities extended to a group of employees.

4. Goods sold to employee at concessional rate: Goods manufactured by employer and sold by him to his Employees at concessional (not free) rates.

5. Conveyance facility: Conveyance facility provided –

• To employees for journey between office and residence and vice versa.

• To the judges of High Court and Supreme Court

6. Training: Amount spent on training of employees including boarding & lodging expenses for such training.

7. Services rendered outside India: Any perquisite allowed outside India by the Government to a citizen of India for rendering services outside India.

8. Contribution in some specified schemes

• Employer’s contribution to a pension or deferred annuity scheme.

• Employer’s contribution to staff group insurance scheme.

• Annual premium paid by the employer on personal accident policy affected by him in respect of his Employee.

9. Loans

• Loan given at nil or at concessional rate of interest by the employer provided the aggregate amount of Loan does not exceed Rs. 20,000.

• Interest free loan for medical treatment of the diseases specified in Rule 3A.

10. Medical facility: A provision of medical facility at office is exempt. However, medical allowance is fully taxable.

11. Periodicals and journals: Periodicals and journals required for discharge of work.

12. Telephone, mobile phones: Expenses for telephone, mobile phones actually incurred on behalf of employee by the employer whether by way of direct payment or reimbursement.

13. Free education facility: Free education facility to the children of employee in an institution owned or maintained by the employer provided cost of such facility does not exceed Rs. 1,000 p.m. per child.

Note: Such facility is not restricted to two children as in case of Children Education allowance.

14. Computer or Laptop: Computer or Laptop provided whether to use at office or at home (provided ownership is not transferred to the employee).

15. Movable assets: Sale or gift of any movable asset (other than car and electronic items) to employee after Being used by the employer for 10 or more years.

16. Leave Travel Concession: Leave Travel Concession (LTC) subject to few conditions.

17. Rent-free accommodation

• Rent-free official residence provided to a Judge of a High Court or the Supreme Court.

• Rent-free furnished residence (including maintenance thereof) to Official of Parliament, a Union Minister or A Leader of opposition in Parliament.

18. Accommodation: Accommodation provided –

• On transfer of an employee in a hotel for a period not exceeding 15 days in aggregate.

• In a remote area to an employee working at a mining site or an onshore exploration site or a project Execution site or a dam site or a power generation site or an offshore site.

19. Tax on non-monetary perquisite paid by employer on behalf of employee. With effect from A.Y. 2003-04 a new Sec. 10(10CC) has been inserted which provides that income tax paid by employer on behalf of employee on Income, being non-monetary perquisite, is not taxable perquisite.

20. Health club, Sports club facility.