PRESENTATION ONPERQUISITES

PRESENTED BYADITYA BORKAR. DOLLY SINGH.

Perquisites
Casual emolument or benefit attached to an office or position in addition to salary or wages

Something that benefits a man by going into his own pocket

Need not be only in kind. It can be in cash.

Conditions To become perquisites

Allowed by Employer to Employee Allowed during Continuance Of employment Directly Depend upon service Personal advantage To the employee Derived by Virtue of Employers authority
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Other conditions
Employer and employee relationship should

exist at any point of time- need not be an employee now. Legal origin is important- Un authorized advantage taken by employee without employers authority will not become perquisites.

Perquisites Includes
1. Rent free Accommodation Provided By employer (Accommodation Related perquisites (1-3) including sweeper, gardener, watchman, gas, electricity, etc)
2. Concessional Accommodation Provided By employer 3. Value of Benefits provided like furniture in the accommodation 4. Personal Obligations of Employee Met by employer 5. Funds paid by employer other than RPF/Insurance fund 6. Fringe Benefits Allowed To employees of organisation other Than companies
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Classification of perquisites

Taxable perquisites

Tax Free perquisites

Taxable Perquisite
1. Rent free or concessional rent accommodation 2. Sweeper in the house, gardener, watchman, personal attendant 3. Free/concessional gas, electricity, water etc 4. Educational facility to employees family members including servants and dependent, parents, spouse and children(need not be dependent) 5. Leave travel concession beyond 2 travels in a block period 6. Car given by employer 7. Transport facility given by transport undertakings except Railway and airlines.

Tax Free Perquisites

1. Medical facility. 2. Recreation facility. 3. Conference. 4.Tour and travel facility. 5. Refreshments. 6.Conveyance. 7. Mobile or phone facility. 8.Lunch or dinner. 9.Interest free loans.

Perquisites specifically exempt:

1. Medical Reimbursement up to INR 15,000. 2. Expenditure on medical treatment in certain cases 3. Provision of a vehicle for travel from office to home and vice versa. 4. Health insurance premium paid by the employer. 5. Telephone expenses. 6. Meals provided at working hours or through paid vouchers where the value does not exceed fifty rupees. 7. Gift voucher less than rupees five thousand.