Complete Tax Details (2)

7/23/2019 Complete Tax Details (2)

1/23

HRA Calculation Income Tax Financial Year 2014-HRA Calculation Income Tax Financial Year 2014-

2015 (Assessment Year 2015-2016)2015 (Assessment Year 2015-2016)

Ho HRA is calculate! " #ection 10 (1$A) o% t&e Income Tax ActHo HRA is calculate! " #ection 10 (1$A) o% t&e Income Tax Act

For an' emlo'ee receiin* HRA %rom t&e emlo'er is eli*i+le %orFor an' emlo'ee receiin* HRA %rom t&e emlo'er is eli*i+le %or

Income Tax exemtion as un!er, roi!e! t&at exen!iture on rent isIncome Tax exemtion as un!er, roi!e! t&at exen!iture on rent is

actuall' occurre! Consi!er t&e least o% t&e %olloin* as taxactuall' occurre! Consi!er t&e least o% t&e %olloin* as tax

exemtion.exemtion.

(i) HRA receie!(i) HRA receie!

(ii) Rent ai! less 10/ o% salar'(ii) Rent ai! less 10/ o% salar'

(iii) 40/ o% #alar' (50/ in case o% um+ai, C&ennai, olata,(iii) 40/ o% #alar' (50/ in case o% um+ai, C&ennai, olata,

3el&i) #alar' &ere means asic 3earness Alloance, i% !earness3el&i) #alar' &ere means asic 3earness Alloance, i% !earness

alloance is roi!e! +' t&e terms o% emlo'mentalloance is roi!e! +' t&e terms o% emlo'ment


2/23

Calculation of the exemption amountCalculation of the exemption amount #a' 'our asic #alar' is Rs5000#a' 'our asic #alar' is Rs5000 asic #alar' Rs (5000712) Rs 60,0008-asic #alar' Rs (5000712) Rs 60,0008- 3earness Alloance (3A) Rs (1000712) Rs 120008-3earness Alloance (3A) Rs (1000712) Rs 120008- House Rent Alloance (HRA) Rs (2000712) Rs 240008-House Rent Alloance (HRA) Rs (2000712) Rs 240008- Actual Rent 9ai! Rs(2000712) Rs 240008-Actual Rent 9ai! Rs(2000712) Rs 240008- :et us assume 'ou sta' in a lace &ere 40/ o% t&e asic 3A is:et us assume 'ou sta' in a lace &ere 40/ o% t&e asic 3A is

consi!ere! to +e sla+ %or HRA T&e coman' a's 'ou annual HRAconsi!ere! to +e sla+ %or HRA T&e coman' a's 'ou annual HRAo% 24,0008- T&e calculation t&en oul! +e.o% 24,0008- T&e calculation t&en oul! +e.

Actual HRA receie! (2000712) Rs 240008-Actual HRA receie! (2000712) Rs 240008- Rent 9ai! in excess o% 10/ o% salar' ( 24000-;200) Rs 16


3/23

Section 80D: Medical Insurance PremiumsSection 80D: Medical Insurance Premiums

Healt& insurance, oularl' non as e!iclaim 9olicies, roi!esHealt& insurance, oularl' non as e!iclaim 9olicies, roi!es

a !e!uction o% u to Rs$5, 000 (Rs15, 000 %or remium a'mentsa !e!uction o% u to Rs$5, 000 (Rs15, 000 %or remium a'mentstoar!s olicies on sel%, souse an! c&il!ren an! Rs15, 000 %ortoar!s olicies on sel%, souse an! c&il!ren an! Rs15, 000 %or

remium a'ment toar!s non-senior citien !een!ent arents orremium a'ment toar!s non-senior citien !een!ent arents or

Rs20, 000 %or remium a'ment toar!s senior citien !een!ent)Rs20, 000 %or remium a'ment toar!s senior citien !een!ent)

A!!itional !e!uction o% Rs 5,000 %or reentie &ealt& c&ec-uA!!itional !e!uction o% Rs 5,000 %or reentie &ealt& c&ec-u

T&is !e!uction is in a!!ition to Rs1, 50,000 sain*s un!er ITT&is !e!uction is in a!!ition to Rs1, 50,000 sain*s un!er IT

!e!uctions clause


4/23

PF is deducted from employees monthly pay @ 12% of basic + DA (where DA is paid!

"here DA is not paid it is restricted to basic pay!

#ontribution to Pension fund from employers contribution to PF is $!% of 1&')*' i!e!

s! 12,-!&! #entral .o/ernment also contribute to such pension scheme @ 1!10% ofs! 1&')*' i!e!' s! 1,' tain3 the total contribution to 4PF related pension fund

s! 12,-!& + s! 1, 5 1,2!&P!

Amount recei/ed from such PF is not e6empt from ta6 in all cases! 7nly under the

circumstances listed below will the amount withdrawn from PF be eli3ible for such

e6emption from ta68

9:f the employee has rendered continuous ser/ice with the employer for fi/e years or more

A3ain' if the balance includes amount transferred from the indi/iduals PF account

maintained by pre/ious employer(s' then the years of continuous ser/ice rendered to

the former employer(s would be included for the purpose of computin3 the fi/e*year!9:f the employee has not rendered continuous ser/ice of fi/e years' but the ser/ice is

terminated by reason of the employees ill health or discontinuance of the employers

business or reasons beyond the control of the employee' the amount will be ta6*e6empt!9Another ta6*e6empt case is when' on the cessation of the employment' the employee

finds another ;ob and the the accumulated PF balance is transferred to his indi/idual PF

account maintained by the new employer!


5/23

Sl. No. Section Details of deduction Limit

1. 80Ceneral deduction for in!estmentin PP"# P"# Life Insurance# $LIP#Stamp dut% on house# "ixed

deposits for & %ears # 'onds etc

Maximum (s1#&0#000 is allo)ed. In!estmentneed not 'e from taxa'le

income.

*. 80CCC Deduction in case of contri'utionto pension fund. +o)e!er# itshould 'e noted that surrender!alue or emplo%er contri'ution isconsidered income.

Maximum is (s 1#&0#000. (unconcurrentl% )ith Section 80C.

,. 80CCD Deduction in respect tocontri'ution to ne) pensionscheme -NPS /mplo%ees ofcentral o!ernment and othersare elii'le

Maximum is sum of emplo%ersand emplo%ees contri'ution tothe maximum: 10 2 of salar%#not exceedin (s. &0#00034. (un(un

concurrentl% )ith Sections 80C#concurrentl% )ith Sections 80C#

80CCC and 80CCD.80CCC and 80CCD.

5. 80D Medical insurance on self# spousechildren or parents

(s 1 for self# spouse 6children. /xtra (s 1 forinsurance on parents. I" parents area'o!e 7& %ears# extra sum should 'eread as (s *0#000. dditional (s.

for pre!enti!e health chec94up. hus maximum is (S 50#000


6/23

5. 80DD "or maintenance includin treatment orinsurance the li!es of ph%sicall% disa'leddependent relati!es.

(s &0#000. In case disa'ilit%is se!ere# the amount is (s1#00#000 to 1,25,000

6. 80DD; "or medical treatment of self or relati!essufferin from specified disease

ctual amount paid to theextent of (s 50#000. In caseof patient 'ein Sr Citi


7/23

10. 80 "or donation to entities inscientific research or rural

de!elopment.

=nl% those tax pa%ers)ho ha!e no 'usiness

income can claim this

deduction. Maximum

is e>ui!alent to 100 2of donation.

11. 80$ Deduction in respect ofpermanent ph%sical disa'ilit%

includin 'lindness totaxpa%er.

(S 1 la9h )hich oesto (s 1.*& la9hin case

taxpa%er is sufferinfrom se!ere disa'ilit%.

1*. 80??;#

80((;

(o%alt% income from 'oo9s

-other than text 'oo9s and

patents.

(o%alt% income or (s.

,# 00#000 )hiche!er is

less.


8/23

Lea!e ra!el Concession @Sec 10-&ALea!e ra!el Concession @Sec 10-&A

T&e amount ai! +' t&e emlo'er %or t&e emlo'ee an!T&e amount ai! +' t&e emlo'er %or t&e emlo'ee an!&is %amil' %or trael to an' lace in In!ia or %or traellin*&is %amil' %or trael to an' lace in In!ia or %or traellin*to an' lace in In!ia a%ter retirement is exemt T&eto an' lace in In!ia a%ter retirement is exemt T&eamount &as to +e sent on transortation " eit&er +' air,amount &as to +e sent on transortation " eit&er +' air,rail or roa! Also, t&is exemtion is %or rimar' traelrail or roa! Also, t&is exemtion is %or rimar' trael

+eteen 'our cit' o% sta' an! 'our !estination t&er+eteen 'our cit' o% sta' an! 'our !estination t&ertrael exenses lie taxi 8 ca+ %are, auto %are, etc cannottrael exenses lie taxi 8 ca+ %are, auto %are, etc cannot

+e claime! as exemt+e claime! as exemt

I% 'ou trael +' rail (or roa!), t&e maximum amount t&atI% 'ou trael +' rail (or roa!), t&e maximum amount t&atcan +e claime! as exemt is t&e air con!itione! %irst classcan +e claime! as exemt is t&e air con!itione! %irst class

(AC I Class) rail %are to 'our !estination +' t&e s&ortest(AC I Class) rail %are to 'our !estination +' t&e s&ortestroute> or t&e amount sent, &ic&eer is less, is notroute> or t&e amount sent, &ic&eer is less, is nottaxa+le I% 'ou trael +' air, t&e maximum amount t&attaxa+le I% 'ou trael +' air, t&e maximum amount t&atcan +e claime! as exemt is t&e econom' class air %are tocan +e claime! as exemt is t&e econom' class air %are to'our !estination +' t&e s&ortest route'our !estination +' t&e s&ortest route


9/23

T&e exemtion is aaila+le on t&e exenses %or to Dourne'sT&e exemtion is aaila+le on t&e exenses %or to Dourne'sin a +loc o% %our calen!ar 'ears T&e current %our-'earin a +loc o% %our calen!ar 'ears T&e current %our-'ear

+loc is %rom Eanuar' 1, 2010 to 3ecem+er $1, 201$ :TA+loc is %rom Eanuar' 1, 2010 to 3ecem+er $1, 201$ :TAcan +e *ien out eer' 'ear, or once in eer' 2 or 4 'earscan +e *ien out eer' 'ear, or once in eer' 2 or 4 'ears

an' or*aniations also allo 'ou to accumulate t&isan' or*aniations also allo 'ou to accumulate t&isalloance %or 2 'earsalloance %or 2 'ears

9roo% o% trael nee!s to +e resere! an! resente! to claim9roo% o% trael nee!s to +e resere! an! resente! to claimt&is exemtion T&e ticets are consi!ere! ali! roo% I%t&is exemtion T&e ticets are consi!ere! ali! roo% I%'ou arran*e trael t&rou*& a &ire! or rental car, t&e receit'ou arran*e trael t&rou*& a &ire! or rental car, t&e receit%rom t&e trael a*enc' or car rental a*enc' is consi!ere!%rom t&e trael a*enc' or car rental a*enc' is consi!ere!ali! roo% 9lease note t&at an' non-transort comonentali! roo% 9lease note t&at an' non-transort comonent(lie !rier alloance) is not consi!ere! %or income tax(lie !rier alloance) is not consi!ere! %or income taxexemtionexemtion

Hoeer, man' or*aniations alon* it& t&e mont&l' salar'Hoeer, man' or*aniations alon* it& t&e mont&l' salar'a' :TA (leae trael alloance) T&is is taxa+le it&a' :TA (leae trael alloance) T&is is taxa+le it&e%%ect %rom 1-4-2012e%%ect %rom 1-4-2012


10/23

+ome loan and tax plannin+ome loan and tax plannin

Rea'ment o% rincial amountG an! 9a'ment o% interestGRea'ment o% rincial amountG an! 9a'ment o% interestG

are eli*i+le %or tax +ene%itare eli*i+le %or tax +ene%it

(epa%ment of principal amount(epa%ment of principal amount> aes 'ou eli*i+le to claim> aes 'ou eli*i+le to claim

a !e!uction u to a sum o% 150,000 un!er section

eseciall' i% 'our souses income is taxa+le T&is ill result ineseciall' i% 'our souses income is taxa+le T&is ill result in

&i*&er tax sain*&i*&er tax sain*


11/23

Pa%ment of ax on Non4monetar% Per>uisites '%Pa%ment of ax on Non4monetar% Per>uisites '%

/mplo%er/mplo%er

An otion &as +een *ien to t&e emlo'er to a' t&eAn otion &as +een *ien to t&e emlo'er to a' t&e

tax on non-monetar' er?uisites *ien to an emlo'eetax on non-monetar' er?uisites *ien to an emlo'ee

T&e emlo'er ma', at &is otion, mae a'ment o% t&eT&e emlo'er ma', at &is otion, mae a'ment o% t&e

tax on suc& er?uisites &imsel% it&out main* an'tax on suc& er?uisites &imsel% it&out main* an'

T3# %rom t&e salar' o% t&e emlo'ee T&e emlo'erT3# %rom t&e salar' o% t&e emlo'ee T&e emlo'erill &ae to a' suc& tax at t&e time &en suc& tax asill &ae to a' suc& tax at t&e time &en suc& tax as

ot&erise !e!ucti+le ie at t&e time o% a'ment o%ot&erise !e!ucti+le ie at t&e time o% a'ment o%

income c&ar*ea+le un!er t&e &ea! salariesG to t&eincome c&ar*ea+le un!er t&e &ea! salariesG to t&e

emlo'eeemlo'ee


12/23

Per>uisite includes:Per>uisite includes:

T&e alue o% rent %ree accommo!ation roi!e! to t&e emlo'ee +'T&e alue o% rent %ree accommo!ation roi!e! to t&e emlo'ee +'&is8&er emlo'er>&is8&er emlo'er>

T&e alue o% an' concession in t&e matter o% rent in resect o% an'T&e alue o% an' concession in t&e matter o% rent in resect o% an'accommo!ation roi!e! to t&e emlo'ee +' &is emlo'er>accommo!ation roi!e! to t&e emlo'ee +' &is emlo'er>

he !alue of an% 'enefit or amenit% ranted or pro!ided free ofhe !alue of an% 'enefit or amenit% ranted or pro!ided free of

cost or at concessional rate in an% of the follo)in cases:cost or at concessional rate in an% of the follo)in cases:ii ' a coman' to an emlo'ee &o is a !irector o% suc& coman'>' a coman' to an emlo'ee &o is a !irector o% suc& coman'>

iiii ' a coman' to an emlo'ee &o &as a su+stantial interest in t&e' a coman' to an emlo'ee &o &as a su+stantial interest in t&ecoman'>coman'>

iiiiii ' an emlo'er (inclu!in* a coman')to an emlo'ee, &o is not' an emlo'er (inclu!in* a coman')to an emlo'ee, &o is not

coere! +' (i) or (ii) a+oe an! &ose income un!er t&e &ea!coere! +' (i) or (ii) a+oe an! &ose income un!er t&e &ea!#alaries (&et&er !ue %rom or ai! or alloe! +' one or more#alaries (&et&er !ue %rom or ai! or alloe! +' one or moreemlo'ers), exclusie o% t&e alue o% all +ene%its an! amenities notemlo'ers), exclusie o% t&e alue o% all +ene%its an! amenities not

roi!e! +' a' o% monetar' a'ment, excee!s Rs50,0008-roi!e! +' a' o% monetar' a'ment, excee!s Rs50,0008-

ii =&at constitute concession in t&e matter o% rent &ae +een=&at constitute concession in t&e matter o% rent &ae +eenrescri+e! in @xlanation 1 to 4 +elo 1;(2)(ii) o% t&e Income Taxrescri+e! in @xlanation 1 to 4 +elo 1;(2)(ii) o% t&e Income Tax

Act, 161Act, 161


13/23

IJIJ An' sum ai! +' t&e emlo'er in resect o% an'An' sum ai! +' t&e emlo'er in resect o% an'

o+li*ation &ic& oul! &ae +een ai! +' t&e assesseeo+li*ation &ic& oul! &ae +een ai! +' t&e assessee

JJ An' sum a'a+le +' t&e emlo'er, &et&er !irectl' orAn' sum a'a+le +' t&e emlo'er, &et&er !irectl' ort&rou*& a %un!, ot&er t&an a reco*nie! roi!ent %un! ort&rou*& a %un!, ot&er t&an a reco*nie! roi!ent %un! or

an aroe! suerannuation %un! or ot&er seci%ie! %un!san aroe! suerannuation %un! or ot&er seci%ie! %un!s

u8s 1;, to e%%ect an assurance on t&e li%e o% an assessee oru8s 1;, to e%%ect an assurance on t&e li%e o% an assessee or

to e%%ect a contract %or an annuit'to e%%ect a contract %or an annuit'

JIJI =it& e%%ect %rom 180482010 (AY 2010-11) it is %urt&er=it& e%%ect %rom 180482010 (AY 2010-11) it is %urt&er

clari%ie! t&at t&e alue o% an' seci%ie! securit' or seatclari%ie! t&at t&e alue o% an' seci%ie! securit' or seat

e?uit' s&ares allotte! or trans%erre!, !irectl' or in!irectl',e?uit' s&ares allotte! or trans%erre!, !irectl' or in!irectl',

+' t&e emlo'er, or %ormer emlo'er, %ree o% cost or at+' t&e emlo'er, or %ormer emlo'er, %ree o% cost or at

concessional rate to t&e assessee, s&all constitute aconcessional rate to t&e assessee, s&all constitute a

er?uisite in t&e &an! o% emlo'eeser?uisite in t&e &an! o% emlo'ees


14/23

quisites

rsement of health club, sports club membership fees and similar faciliall employees would not be taxable in your hands.

provided to you through paid vouchers, not transferable and usable only at eaextent of Rs 50 per meal are safe.rsement of telephone expensesincluding a mobile phone actually incurredf your employer is not taxable in your hands. Telephone facility received by ence provided by employer is also not taxable in hand of employee as againstllowance.

nditure incurred on your medical treatment or any of your dependents is exe0 per annum as medical reimbursement subject to provision of bills. #f you arellowance instead of reimbursement, the same is fully taxable.ce to the extent actually incurred to meet the cost of travel on tour orcurred on conveyance in the performance of o$cial duties, expenditure on helthe performance of duties, daily charges on account of absence from normal pl

r are exempt.ment of health insurance premiumby your employer for you and your famind' (nder )ection *0+, provident fund contribution deducted from the employxempted from tax up to an amount of Rs. ".5 la-h or "/ of the employees se allowancefor commuting between home and o$ce is exempt up to Rs "0

Education Allowanceis exempt up to Rs "00 per month per child up to a man. !lso, Rs. 300 per month per child up to two children is allowed if they are in


15/23

he rules for !aluation of per>uisite are as under: 4he rules for !aluation of per>uisite are as under: 4

ccommodationccommodation. - For urose o% aluation o% t&e er?uisite o%. - For urose o% aluation o% t&e er?uisite o%un%urnis&e! accommo!ation, salarie! taxa'ers aluation o%un%urnis&e! accommo!ation, salarie! taxa'ers aluation o%

er?uisite in resect o% accommo!ation oul! +e at rescri+e!er?uisite in resect o% accommo!ation oul! +e at rescri+e!rates, as !iscusse! +elo.rates, as !iscusse! +elo.

=&ere t&e accommo!ation roi!e! to t&e emlo'ee is=&ere t&e accommo!ation roi!e! to t&e emlo'ee is o)ned '%o)ned '%the emplo%erthe emplo%er, t&e rate is 15/ o% Ksalar' in cities &ain*, t&e rate is 15/ o% Ksalar' in cities &ain*

oulation excee!in* 25 la& as er t&e 2001 census T&e rate isoulation excee!in* 25 la& as er t&e 2001 census T&e rate is10/ o% salar' in cities &ain* oulation excee!in* 10 la&s +ut10/ o% salar' in cities &ain* oulation excee!in* 10 la&s +utnot excee!in* 25 la&s as er 2001 Census For ot&er laces, t&enot excee!in* 25 la&s as er 2001 Census For ot&er laces, t&e

er?uisite alue oul! +e ;5 / o% t&e salar'er?uisite alue oul! +e ;5 / o% t&e salar'

=&ere t&e accommo!ation so roi!e! is=&ere t&e accommo!ation so roi!e! is ta9en on lease3 rent '%ta9en on lease3 rent '%the emplo%erthe emplo%er, t&e rescri+e! rate is 15/ o% t&e salar' or t&e, t&e rescri+e! rate is 15/ o% t&e salar' or t&eactual amount o% lease rental a'a+le +' t&e emlo'er, &ic&eeractual amount o% lease rental a'a+le +' t&e emlo'er, &ic&eeris loer, as re!uce! +' an' amount o% rent ai! +' t&e emlo'eeis loer, as re!uce! +' an' amount o% rent ai! +' t&e emlo'ee


16/23

ForFor furnished accommodationfurnished accommodation, t&e alue o% er?uisite as, t&e alue o% er?uisite as!etermine! +' t&e a+oe met&o! s&all +e increase! +'-!etermine! +' t&e a+oe met&o! s&all +e increase! +'-

(i) 10/ o% t&e cost o% %urniture, aliances an!(i) 10/ o% t&e cost o% %urniture, aliances an!

e?uiments, ore?uiments, or (ii) =&ere t&e %urniture, aliances an! e?uiments &ae(ii) =&ere t&e %urniture, aliances an! e?uiments &ae

+een taen on &ire, +' t&e amount o% actual &ire c&ar*es+een taen on &ire, +' t&e amount o% actual &ire c&ar*esa'a+lea'a+le

Accommo!ationG inclu!es a &ouse, %lat, %arm &ouse,Accommo!ationG inclu!es a &ouse, %lat, %arm &ouse,&otel accommo!ation, motel, serice aartment, *uest&otel accommo!ation, motel, serice aartment, *uest&ouse, a caraan, mo+ile &ome, s&i etc Hoeer, t&e&ouse, a caraan, mo+ile &ome, s&i etc Hoeer, t&ealue o% an' accommo!ation roi!e! to an emlo'eealue o% an' accommo!ation roi!e! to an emlo'eeorin* at a minin* site or an on-s&ore oil exloration siteorin* at a minin* site or an on-s&ore oil exloration site

or a roDect execution site or a !am site or a oeror a roDect execution site or a !am site or a oer*eneration site or an o%%-s&ore site ill not +e treate! as a*eneration site or an o%%-s&ore site ill not +e treate! as a

er?uisiteer?uisite


17/23

Hoeer, %or not +ein* treate! as er?uisite, suc& accommo!ationHoeer, %or not +ein* treate! as er?uisite, suc& accommo!ations&oul! eit&er +e locate! in a remote areaG or &ere it is not locate!s&oul! eit&er +e locate! in a remote areaG or &ere it is not locate!in a remote areaG, t&e accommo!ation s&oul! +e o% a temorar'in a remote areaG, t&e accommo!ation s&oul! +e o% a temorar'nature &ain* lint& area o% not more t&an


18/23

IIII Personal attendants etc.:Personal attendants etc.: T&e alue o% %ree serice o% all ersonalT&e alue o% %ree serice o% all ersonalatten!ants inclu!in* a seeer, *ar!ener an! a atc&man is to +eatten!ants inclu!in* a seeer, *ar!ener an! a atc&man is to +e

taen at actual cost to t&e emlo'er =&ere t&e atten!ant is roi!e!taen at actual cost to t&e emlo'er =&ere t&e atten!ant is roi!e!

at t&e resi!ence o% t&e emlo'ee, %ull cost ill +e taxe! as er?uisiteat t&e resi!ence o% t&e emlo'ee, %ull cost ill +e taxe! as er?uisite

in t&e &an!s o% t&e emlo'ee irresectie o% t&e !e*ree o% ersonalin t&e &an!s o% t&e emlo'ee irresectie o% t&e !e*ree o% ersonal

serice ren!ere! to &im An' amount ai! +' t&e emlo'ee %or suc&serice ren!ere! to &im An' amount ai! +' t&e emlo'ee %or suc&

%acilities or serices s&all +e re!uce! %rom t&e a+oe amount%acilities or serices s&all +e re!uce! %rom t&e a+oe amount

III as# electricit% 6 )ater:III as# electricit% 6 )ater: For %ree sul' o% *as, electricit' an!For %ree sul' o% *as, electricit' an!

ater %or &ouse&ol! consumtion, t&e rules roi!e t&at t&e amountater %or &ouse&ol! consumtion, t&e rules roi!e t&at t&e amount

ai! +' t&e emlo'er to t&e a*enc' sul'in* t&e amenit' s&all +e t&eai! +' t&e emlo'er to t&e a*enc' sul'in* t&e amenit' s&all +e t&e

alue o% er?uisite =&ere t&e sul' is ma!e %rom t&e emlo'ersalue o% er?uisite =&ere t&e sul' is ma!e %rom t&e emlo'ers

on resources, t&e manu%acturin* cost er unit incurre! +' t&eon resources, t&e manu%acturin* cost er unit incurre! +' t&eemlo'er oul! +e taen %or t&e aluation o% er?uisite An' amountemlo'er oul! +e taen %or t&e aluation o% er?uisite An' amount

ai! +' t&e emlo'ee %or suc& %acilities or serices s&all +e re!uce!ai! +' t&e emlo'ee %or suc& %acilities or serices s&all +e re!uce!

%rom t&e a+oe amount%rom t&e a+oe amount


19/23

IBIB "ree or concessional education:"ree or concessional education:

9er?uisite on account o% %ree or concessional e!ucation s&all +e9er?uisite on account o% %ree or concessional e!ucation s&all +e

alue! in a manner assumin* t&at suc& exenses are +orne +' t&ealue! in a manner assumin* t&at suc& exenses are +orne +' t&eemlo'ee, an! oul! coer cases &ere an emlo'er is runnin*,emlo'ee, an! oul! coer cases &ere an emlo'er is runnin*,maintainin* or !irectl' or in!irectl' %inancin* t&e e!ucationalmaintainin* or !irectl' or in!irectl' %inancin* t&e e!ucationalinstitution An' amount ai! +' t&e emlo'ee %or suc& %acilities orinstitution An' amount ai! +' t&e emlo'ee %or suc& %acilities orserices s&all +e re!uce! %rom t&e a+oe amount Hoeer, &ereserices s&all +e re!uce! %rom t&e a+oe amount Hoeer, &ere

suc& e!ucational institution itsel% is maintaine! an! one! +' t&esuc& e!ucational institution itsel% is maintaine! an! one! +' t&eemlo'er or &ere suc& %ree e!ucational %acilities are roi!e! inemlo'er or &ere suc& %ree e!ucational %acilities are roi!e! inan' institution +' reason o% &is +ein* in emlo'ment o% t&atan' institution +' reason o% &is +ein* in emlo'ment o% t&atemlo'er, t&e alue o% t&e er?uisite to t&e emlo'ee s&all +eemlo'er, t&e alue o% t&e er?uisite to t&e emlo'ee s&all +e!etermine! it& re%erence to t&e cost o% suc& e!ucation in a similar!etermine! it& re%erence to t&e cost o% suc& e!ucation in a similar

institution in or near t&e localit' i% t&e cost o% suc& e!ucation orinstitution in or near t&e localit' i% t&e cost o% suc& e!ucation orsuc& +ene%it er c&il! excee!s Rs10008- msuc& +ene%it er c&il! excee!s Rs10008- m


20/23

BB Interest free or concessional loansInterest free or concessional loans " It is common ractice, articularl' in" It is common ractice, articularl' in%inancial institutions, to roi!e interest %ree or concessional loans to emlo'ees%inancial institutions, to roi!e interest %ree or concessional loans to emlo'eesor an' mem+er o% &is &ouse&ol! T&e alue o% er?uisite arisin* %rom suc& loansor an' mem+er o% &is &ouse&ol! T&e alue o% er?uisite arisin* %rom suc& loansoul! +e t&e excess o% interest a'a+le at rescri+e! interest rate oer interest, i%oul! +e t&e excess o% interest a'a+le at rescri+e! interest rate oer interest, i%an', actuall' ai! +' t&e emlo'ee or an' mem+er o% &is &ouse&ol! T&ean', actuall' ai! +' t&e emlo'ee or an' mem+er o% &is &ouse&ol! T&e

rescri+e! interest rate oul! no +e t&e rate c&ar*e! er annum +' t&e #taterescri+e! interest rate oul! no +e t&e rate c&ar*e! er annum +' t&e #tatean o% In!ia as on t&e 1st !a' o% t&e releant %inancial 'ear in resect o% loansan o% In!ia as on t&e 1st !a' o% t&e releant %inancial 'ear in resect o% loanso% same t'e an! %or t&e same urose a!ance! +' it to t&e *eneral u+lico% same t'e an! %or t&e same urose a!ance! +' it to t&e *eneral u+lic9er?uisite alue oul! +e calculate! on t&e +asis o% t&e maximum outstan!in*9er?uisite alue oul! +e calculate! on t&e +asis o% t&e maximum outstan!in*

mont&l' +alance met&o! For aluin* er?uisites un!er t&is rule, an' ot&ermont&l' +alance met&o! For aluin* er?uisites un!er t&is rule, an' ot&ermet&o! o% calculation an! a!Dustment ot&erise a!ote! +' t&e emlo'er s&allmet&o! o% calculation an! a!Dustment ot&erise a!ote! +' t&e emlo'er s&allnot +e releantnot +e releant

Hoeer, small loans u to Rs 20,0008- in t&e a**re*ate are exemt :oans %orHoeer, small loans u to Rs 20,0008- in t&e a**re*ate are exemt :oans %orme!ical treatment seci%ie! in Rule $A are also exemt, roi!e! t&e amount o%me!ical treatment seci%ie! in Rule $A are also exemt, roi!e! t&e amount o%

loan %or me!ical reim+ursement is not reim+urse! un!er an' me!ical insuranceloan %or me!ical reim+ursement is not reim+urse! un!er an' me!ical insurancesc&eme =&ere an' me!ical insurance reim+ursement is receie!, t&e er?uisitesc&eme =&ere an' me!ical insurance reim+ursement is receie!, t&e er?uisitealue at t&e rescri+e! rate s&all +e c&ar*e! %rom t&e !ate o% reim+ursement onalue at t&e rescri+e! rate s&all +e c&ar*e! %rom t&e !ate o% reim+ursement ont&e amount reim+urse!, +ut not reai! a*ainst t&e outstan!in* loan taent&e amount reim+urse!, +ut not reai! a*ainst t&e outstan!in* loan taenseci%icall' %or t&is uroseseci%icall' %or t&is urose


21/23

BI. $se of assets: It is common ractice %or an asset one! +' t&e emlo'er to +e

use! +' t&e emlo'ee or an' mem+er o% &is &ouse&ol! T&is er?uisite is to +e c&ar*e!

at t&e rate o% 10/ o% t&e ori*inal cost o% t&e asset as re!uce! +' an' c&ar*es recoere!

%rom t&e emlo'ee %or suc& use Hoeer, t&e use o% Comuters an! :atos oul!

not *ie rise to an' er?uisite

BII. ransfer of assets:%ten an emlo'ee or mem+er o% &is &ouse&ol! +ene%its %rom

t&e trans%er o% moa+le asset (not +ein* s&ares or securities) at no cost or at a cost less

t&an its maret alue %rom t&e emlo'er T&e !i%%erence +eteen t&e ori*inal cost o% t&e

moa+le asset (not +ein* s&ares or securities) an! t&e sum, i% an', ai! +' t&eemlo'ee, s&all +e taen as t&e alue o% er?uisite In case o% a moa+le asset, &ic&

&as alrea!' +een ut to use, t&e ori*inal cost s&all +e re!uce! +' a sum o% 10/ o% suc&

ori*inal cost %or eer' comlete! 'ear o% use o% t&e asset in* to a &i*&er !e*ree o%

o+solescence, in case o% comuters an! electronic *a!*ets, &oeer, t&e alue o%

er?uisite s&all +e ore! out +' re!ucin* 50/ o% t&e actual cost +' t&e re!ucin*

+alance met&o! %or eac& comlete! 'ear o% use @lectronic *a!*ets in t&is case mean

!ata stora*e an! &an!lin* !eices lie comuter, !i*ital !iaries an! rinters T&e' !o

not inclu!e &ouse&ol! aliance (ie &ite *oo!s) lie as&in* mac&ines, microae

oens, mixers, &ot lates, oens etc #imilarl', in case o% cars, t&e alue o% er?uisite

s&all +e ore! out +' re!ucin* 20/ o% its actual cost +' t&e re!ucin* +alance met&o!

%or eac& comlete! 'ear o% use


22/23

BIII Medical (eim'ursement '% the emplo%er exceedin (s.BIII Medical (eim'ursement '% the emplo%er exceedin (s.

1" p.a. u3s. 1-*-! is to 'e ta9en as per>uisites.1" p.a. u3s. 1-*-! is to 'e ta9en as per>uisites.

It is further clarified that the rule position reardin !aluation ofIt is further clarified that the rule position reardin !aluation ofper>uisites are i!en at Section 1-* of Income ax ct# 171 andper>uisites are i!en at Section 1-* of Income ax ct# 171 and

at (ule , of Income ax (ules# 17*. he emplo%ers ma% loo9 intoat (ule , of Income ax (ules# 17*. he emplo%ers ma% loo9 into

the a'o!e pro!isions carefull% 'efore the% determine thethe a'o!e pro!isions carefull% 'efore the% determine the

per>uisite !alue for deduction purposes.per>uisite !alue for deduction purposes.

It is ertinent to mention t&at +ene%its seci%icall' exemt u8sIt is ertinent to mention t&at +ene%its seci%icall' exemt u8s

10(1$A), 10(5), 10(14), 1; etc oul! continue to +e exemt T&ese10(1$A), 10(5), 10(14), 1; etc oul! continue to +e exemt T&ese

inclu!e +ene%its lie trael on tour an! trans%er> leae trael, !ail'inclu!e +ene%its lie trael on tour an! trans%er> leae trael, !ail'alloance to meet tour exenses as rescri+e!, me!ical %acilitiesalloance to meet tour exenses as rescri+e!, me!ical %acilities

su+Dect to con!itionssu+Dect to con!itions


23/23

Income Le!el Male3"emale

-less than 70

Eears ssessee

Senior Citi

Documents

Complete Tax Details (2)