TDS on Salaries - Income Tax Department

(b)
(c)
(d)
(e)
loans upto Rs. 20,000/-, loans for medical treatment specified
in Rule 3A are exempt, provided the same are not reimbursed
under medical insurance. [Rule 3 (7) (iii)(i)]
Value of free meals and non alcoholic beverages : The
value of perquisite is the cost to the employer as reduced by
the amount paid or recovered from employee. However,
aforesaid will not apply to free food or food vouchers to used
during working however with value not encoding Rs. 50/- per
meal. [ Rule 3 (7) (iii)]
Value of gift or voucher or token - Perquisite is the sum
equal to the amount of such gift. However, where the value
of such gifts and voucher is below Rs. 5000/- in aggregate
during the previous year, the perquisite shall be nil.
[Rule 3 (7) (iv)]
Credit card provided by employer- The perquisite is the
amount of expenses incurred (including membership fee, annual
fee etc. as reduced by the amount recovered from the
employee. However, the perquisite shall be nil if the expenses
on credit card are incurred wholly and exclusively for official
purposes, details of which are maintained and employer
certifies it to be for official purposes. [Rule 3/7(v)]
Club Membership provided by employer – The perquisite
is the amount of expenditure incurred or reimbursed by the
employer for the membership/annual/or any expenditure, with
reference to club membership as reduced by the amount paid
by or recovered from the employee. However, the aforesaid
will not include the following :
(i) Initial fee paid for acquiring corporate membership.
(ii)
Where such expenses are incurred wholly and exclusively
for the purpose of business, its complete details(including
business expediency is maintained) and employer certifies
it to be for the purpose of business/official duties.
(f)
(iii) Where facility of use of health club, sports and similar
facilities are uniformly provided to all employees.
[Rule 3 (7) (vi)]
Use of Assets
(i) In case the employee is provided by the employer any
immovable asset (other than assets already specified in
Rule-3 and other than laptop and computers) then the
value of the benefit shall be 10% per annum of the actual
cost of such asset. In case asset is hired by the employer
and then given to the employee then the value of the
benefit shall be the rent or charge paid or payable by the
employer. However, the amount paid by the employee
or recovered from him by the employer(towards the cost
of the asset or rent will be reduced from this benefit).
[Rule 3 (7) (vii)]
(ii) Transfer of Immovable Asset
If employer transfers to the employee any immovable
asset belonging to the employer either directly or indirectly
to the employee or member is household then the value
of benefit shall be the actual cost of such asset to the
employer. However, an amount of 10% of such cost for
each completed year of use of asset by the employer
shall be reduced as the cost of normal wear and tear.
Further, the amount paid by or recovered from the
employee is a consideration towards such transfer shall
also be reduced in case of computers and electronics
items the normal wear and tear is to be calculated @
50% while in the case of motor cars @ 20% by the
reducing balance method. [Rule 3 (7) (viii)]
(g) Other benefits
The value of any other benefit or amenity provided by the
employer shall be determined on the basis of cost to the employer
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