Page 193 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes 11. Sale of an asset (being a movable asset but other than car, electronic items) or gift of such
asset to an employee after using the same by the employer for 10 years or more is a
perquisite in the hands of employee.
12. Perquisites to Government employees being citizens of India, posted abroad.
13. Rent-free house to High Court Judges [High Court Judges (Conditions of Service) Act,
1954].
14. Rent-free house to Supreme Court Judges [Supreme Court Judges (Conditions of Service)
Act, 1958].

15. Conveyance facility to High Court and Supreme Court judges.
16. Privilege passes and privilege ticket orders granted by Railways to its employees.
17. Sum payable by an employer through a Recognised Provident Fund or an Approved
Superannuation Fund or Deposit-linked Insurance Fund established under the Coal Mines
Provident Fund or the Employees’ Provident Fund.
18. Sum payable by an employer to pension or deferred annuity scheme.

19. Employer’s contribution to staff group insurance scheme.
20. Actual travelling expenses paid/reimbursed by the employer for journeys undertaken by
employees for business purposes.

21. Leave travel concession exempt as per provision of Section 10.
22. Free holiday trips to non-specified employees.
23. Rent-free furnished residence (including maintenance thereof) provided to an Officer of
Parliament, a Union Ministry and a leader of opposition in Parliament.
24. Goods sold to employees, by their employer, at concessional rates.
25. The value of any benefit provided by a company free of cost or at a concessional rate to its
employees by way of allotment of shares, debentures or warrants directly or indirectly
under the Employees’ Stock Option Plan or Scheme of the said company.
26. Free educational facility to the children of the employee in an educational institute owned
or maintained by the employer if cost of such education or value of such benefit does not
exceed 1,000/- per month per child.

27. Interest free loan to an employee if the amount of loan does not exceed 20,000/- or if loan
is provided for specified diseases.
28. Computer or laptops (provided only for use, ownership is retained by the employer).

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Caution One cannot be said to allow a perquisite to an employee if the employee has no
right to the same. It cannot apply to contingent payment to which the employee has no
right till the contingency occurs.

7.5.2 Taxable Perquisites (In all Cases)

The value of the following perquisites is added to the salary income of the employee:
1. Value of rent-free residential accommodation provided to the assessee (except to the
Judge of a High Court or Supreme Court; an Officer of Parliament, a Union Minister and
a leader of opposition in Parliament).

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