Saturday, July 21, 2012

Salary:- Exempted Perquisites from Income Tax

 Perquisites exempt from Income Tax : 

Some instances of perquisites exempt from tax are given below :
  • I) Provision of medical facilities (proviso to Sec. 17(2): Value of medical treatment in any hospital maintained by the Government or any local authority or by the employer or approved by the Chief Commissioner of Income Tax. Besides, any sum paid by the employer towards medical reimbursement other than as discussed above is exempt upto Rs. 15,000/-.
  • II) Perquisites allowed outside India by the Government to a citizen of India for rendering services outside India (Sec. 10(7)).
  • III) Rent free official residence provided to a Judge of High Court or Supreme Court or an Officer of Parliament, union Minister or Leader of Opposition.
  • IV) No perquisite shall arise if interest free/concessional loans are made available for medical treatment of specified diseases in Rule 3A or where the loan is petty not exceeding in the aggregate Rs. 20,000/-.
  • V) No perquisite shall arise in relation to expenses on telephones including a mobile phone incurred on behalf of the employee by the employer.

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