TDS on Salaries - Income Tax Department
TDS on Salaries - Income Tax Department
TDS on Salaries - Income Tax Department
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This is to be increased by an amount representing normal wear<br />
and tear of the motor car as reduced by any amount charged<br />
from the employee.<br />
(iii) Where motor car is used partly in performance of duties and<br />
partly for private or pers<strong>on</strong>al purposes. The perquisite is<br />
(a) Rs. 1800(plus Rs. 900 if chauffeur is provided) if running<br />
and maintenance is borne by employer.<br />
(b) Rs. 600 (plus Rs. 900 of chauffeur provided) where<br />
running and maintenance for private use is fully met by<br />
employee.<br />
The aforesaid amounts will be increased to Rs. 2400(instead<br />
of Rs. 1800) and Rs. 900/-(instead of Rs. 600) where the motor<br />
car provided, has cubic capacity of engine exceeding 1.6 litres.<br />
(iv) Where employee owns a motor car but the actual running<br />
and maintenance charges(including remunerati<strong>on</strong> of the<br />
chauffeur if any) are met or reimbursed to him by the employer<br />
and,<br />
(a) where the reimbursement is for use of vehicle for official<br />
purpose the perquisite will be nil. However specified<br />
documents need to be maintained.<br />
(b) Where vehicle is used partly for official and partly for<br />
pers<strong>on</strong>al purposes, the perquisite is the actual amount of<br />
expenditure incurred by the employer as reduced by<br />
amount specified in 3.3.2(iii) above.<br />
3.3.3 Provisi<strong>on</strong> of sweeper, gardener, watchman or<br />
attendant - The value of perquisite resulting from provisi<strong>on</strong> of a<br />
sweeper ,a gardener, a watchman or a pers<strong>on</strong>al attendant shall be<br />
the actual cost to the employer as reduced by the amount paid by<br />
the employee in respect of such services. ( Cost to the employer in<br />
respect of the above will be the salary paid / payable) [Rule 3(3)]<br />
3.3.4 Perquisite arising out of supply of gas, electric<br />
energy or water - This shall be determined as the amount paid<br />
by the employer to the agency supplying the same. If the supply is<br />
from the employer’s own resources, the value of the perquisite<br />
would be the manufacturing cost per unit incurred by the employer.<br />
[Rule 3(4)]<br />
3.3.5 Free/C<strong>on</strong>cessi<strong>on</strong>al Educati<strong>on</strong>al Facility - Value<br />
of the perquisite would be the expenditure incurred by the employer.<br />
If the educati<strong>on</strong>al instituti<strong>on</strong> is maintained & owned by the employer,<br />
the value would be nil if the value of the benefit per child is below<br />
Rs. 1000/- P.M. or else the reas<strong>on</strong>able cost of such educati<strong>on</strong> in a<br />
similar instituti<strong>on</strong> in or near the locality[Rule 3(5)]<br />
3.3.6 Free/C<strong>on</strong>cessi<strong>on</strong>al journeys provided by an<br />
undertaking engaged in carriage or passengers or<br />
goods Rule 3(6) –<br />
The value of perquisite is the value at which such benefit or<br />
such amenity is offered by such employer to the public as reduced<br />
by the amount, if any, paid or recovered from the employer for<br />
such benefit or amenity. However, the aforesaid will not be<br />
applicable to employer of an airline or railways.<br />
3.3.7 Value of certain other benefits :-<br />
(a)<br />
Interest free/c<strong>on</strong>cessi<strong>on</strong>al loans - The value of the<br />
perquisite shall be the excess of interest payable at the<br />
prescribed interest rate over, interest, if any, actually paid by<br />
the employee or any member of his household. The prescribed<br />
interest rate would be the rate charged by State Bank of India<br />
as <strong>on</strong> the 1 st Day of the relevant Financial Year in respect of<br />
loans of the same type and for same purpose advanced by it<br />
to general public. Perquisite is to be calculated <strong>on</strong> the basis of<br />
the maximum outstanding m<strong>on</strong>thly balance method. However,<br />
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