Page 189 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes exclusive of the value of all benefits or amenities not provided for by way of
monetary payment, exceeds fifty thousand rupees

!

Caution For the removal of doubts, it is hereby declared that the use of any vehicle provided
by a company or an employer for journey by the assessee from his residence to his office
or other place of work, or from such office or place to his residence, shall not be regarded
as a benefit or amenity granted or provided to him free of cost or at concessional rate for
the purposes of this sub-clause;
(v) any sum paid by the employer in respect of any obligation which, but for such payment,
would have been payable by the assessee;

(vi) any sum payable by the employer, whether directly or through a fund, other than a
recognised provident fund or an approved superannuation fund or a Deposit-linked
Insurance Fund established under section 3G of the Coal Mines Provident Fund and
Miscellaneous Provisions Act, 1948 (46 of 1948), or, as the case may be, section 6C of the
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)], to effect
an assurance on the life of the assessee or to effect a contract for an annuity;
(vii) the value of any specified security or sweat equity shares allotted or transferred, directly
or indirectly, by the employer, or former employer, free of cost or at concessional rate to
the assessee.

Notes For the purposes of this sub-clause:

(a) “specified security” means the securities as defined in clause (h) of section 2 of the
Securities Contracts (Regulation) Act, 1956 (42 of 1956) and, where employees’ stock
option has been granted under any plan or scheme therefor, includes the securities
offered under such plan or scheme;
(b) “sweat equity shares” means equity shares issued by a company to its employees or
directors at a discount or for consideration other than cash for providing know-how
or making available rights in the nature of intellectual property rights or value
additions, by whatever name called;
(c) the value of any specified security or sweat equity shares shall be the fair market
value of the specified security or sweat equity shares, as the case may be, on the date
on which the option is exercised by the assessee as reduced by the amount actually
paid by, or recovered from, the assessee in respect of such security or shares;
(d) “fair market value” means the value determined in accordance with the method as
may be prescribed;

(e) “option” means a right but not an obligation granted to an employee to apply for
the specified security or sweat equity shares at a predetermined price;

(viii) the amount of any contribution to an approved superannuation fund by the employer in
respect of the assessee, to the extent it exceeds one lakh rupees; and the value of any other
fringe benefit or amenity as may be prescribed:
Provided that nothing in this clause shall apply to:

(i) the value of any medical treatment provided to an employee or any member of his
family in any hospital maintained by the employer;

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