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TAX PLANNING PERQUISITES 17(2)
Perquisites 17(1)((iv) r.w sec 17(2) <ul><li>Are the benefits given to employee by the employer in addition to his salary ...
Perquisites taxable in the hands of all the employees <ul><li>Rent Free Accommodation17(2)(i) </li></ul><ul><li>Obligation...
Rent free accommodation17(2)(i) <ul><li>It refers to houses provided by the company or by the employer to its employees. I...
Valuation of rent free accommodation <ul><li>Government employees </li></ul><ul><li>Non government employees </li></ul><ul...
Obligation Perquisites17(2)(iv) <ul><li>LIC premium </li></ul><ul><li>Income Tax </li></ul><ul><li>Professional tax </li><...
Medical Benefits <ul><li>Within India </li></ul><ul><li>The value of any treatment provided free to an employee or any mem...
Conti………. <ul><li>A certificate from the hospital specifying the disease for which the medical treatment is required </li>...
Medical treatment outside India <ul><li>If the employee incurs any expenditure on the medical treatment of the employee or...
Tax treatment <ul><li>Actual expenses of the employee which is met by the employer, shall be the taxable value in the hand...
SBI lending rates <ul><li>Housing loan </li></ul><ul><li>Up to 5 years </li></ul><ul><li>Exceeding 10 years not more than ...
Depreciation Rates <ul><li>Computers and printers-50% </li></ul><ul><li>Motor car-20% </li></ul><ul><li>Other assets-10% <...
Perquisites taxable in the hands of specified employees only17(2)(ii) <ul><li>Domestic Servant Facilities </li></ul><ul><l...
Specified Employee <ul><li>He/She should be a director of a company </li></ul><ul><li>He/She should  have substantial inte...
Tax free perquisites17(2 ) <ul><li>Medical benefits </li></ul><ul><li>Tea and snacks or free food or beverages provided in...
Continue…. <ul><li>Facility of guest house or holiday home </li></ul><ul><li>Entertainment expenses </li></ul><ul><li>Free...
Latest modifications amended <ul><li>Holiday facilities3(7)(ii) </li></ul><ul><li>Free food3(7)(iii) </li></ul><ul><li>Gif...
THANK YOU By, Amudha.J
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Tax Planning

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Transcript of "Tax Planning"

  1. 1. TAX PLANNING PERQUISITES 17(2)
  2. 2. Perquisites 17(1)((iv) r.w sec 17(2) <ul><li>Are the benefits given to employee by the employer in addition to his salary and wages, normally perquisites will be in form of kind i.e., in non monetary form </li></ul><ul><li>For the tax purpose perquisites are classified into 3 categories. They are as follows- </li></ul>
  3. 3. Perquisites taxable in the hands of all the employees <ul><li>Rent Free Accommodation17(2)(i) </li></ul><ul><li>Obligation Perquisites17(2)(iv) </li></ul><ul><li>Fringe Benefits </li></ul>
  4. 4. Rent free accommodation17(2)(i) <ul><li>It refers to houses provided by the company or by the employer to its employees. It may be furnished or unfurnished accommodation </li></ul><ul><li>Salary for RFA purpose includes the following </li></ul><ul><li>Basic Salary </li></ul><ul><li>DA, if entering into service benefits </li></ul><ul><li>DP Bonus and Commission </li></ul><ul><li>Leave encashment and all taxable allowences(only taxable portion) </li></ul>
  5. 5. Valuation of rent free accommodation <ul><li>Government employees </li></ul><ul><li>Non government employees </li></ul><ul><li>Accommodation provided at hotel </li></ul><ul><li>Accommodation provided at site </li></ul><ul><li>Accommodation provided at the time of transfer </li></ul>
  6. 6. Obligation Perquisites17(2)(iv) <ul><li>LIC premium </li></ul><ul><li>Income Tax </li></ul><ul><li>Professional tax </li></ul><ul><li>Motor car </li></ul><ul><li>Gas, electricity, water supply connection </li></ul><ul><li>Domestic servant appointed </li></ul><ul><li>Reimbursement of scholarship </li></ul><ul><li>Medical bill </li></ul><ul><li>Telephone bill </li></ul>
  7. 7. Medical Benefits <ul><li>Within India </li></ul><ul><li>The value of any treatment provided free to an employee or any member of his family in any hospital maintained by the employer </li></ul><ul><li>Any sum paid by the employer in respect of any expenditure incurred by the employee on medical treatment of himself and member of his family </li></ul><ul><li>In hospital maintained by government or local authority or approved by the government for medical treatment of its employees </li></ul><ul><li>In respect of prescribed diseases or ailments, in any hospital approved by the chief commissioner under clause ii the benefit will be allowed if the employee fulfills the following conditions </li></ul>
  8. 8. Conti………. <ul><li>A certificate from the hospital specifying the disease for which the medical treatment is required </li></ul><ul><li>The receipt for the amount paid to the hospital for the treatment </li></ul><ul><li>Limited exemption: if the medical treatment of the employee or any member of his family is done at any hospital other than stated as above the exemption will be restricted to Rs. 15000 </li></ul>
  9. 9. Medical treatment outside India <ul><li>If the employee incurs any expenditure on the medical treatment of the employee or any member of his family outside India </li></ul><ul><li>If the employer incurs any expenditure on stay abroad of the patient (employee or any member of his family) and one attendant who accompanies the patient in connection with such treatment, it shall be exempted </li></ul>
  10. 10. Tax treatment <ul><li>Actual expenses of the employee which is met by the employer, shall be the taxable value in the hands of employee </li></ul><ul><li>FRINGE BENEFITS </li></ul><ul><li>are additional benefits provided to employee in the course of his employment. It includes the following </li></ul><ul><li>(1) Interest free loan or concessional loan </li></ul><ul><li>(2) Use of employers movable assets </li></ul><ul><li>(3) transfer of employer movable assets </li></ul>
  11. 11. SBI lending rates <ul><li>Housing loan </li></ul><ul><li>Up to 5 years </li></ul><ul><li>Exceeding 10 years not more than 15 years </li></ul><ul><li>Exceeding 15 years </li></ul><ul><li>Personal loan </li></ul><ul><li>Two wheeler loan </li></ul><ul><li>Car loan </li></ul><ul><li>Educational loan up to 400000 </li></ul><ul><li>Exceeding 400000 </li></ul><ul><li>10.25 </li></ul><ul><li>10.75 </li></ul><ul><li>10.75 </li></ul><ul><li>15.25 </li></ul><ul><li>14.25 </li></ul><ul><li>12 </li></ul><ul><li>11.5 </li></ul><ul><li>13.25 </li></ul>
  12. 12. Depreciation Rates <ul><li>Computers and printers-50% </li></ul><ul><li>Motor car-20% </li></ul><ul><li>Other assets-10% </li></ul>
  13. 13. Perquisites taxable in the hands of specified employees only17(2)(ii) <ul><li>Domestic Servant Facilities </li></ul><ul><li>Free gas, Electricity and water facilities </li></ul><ul><li>Educational facilities </li></ul>
  14. 14. Specified Employee <ul><li>He/She should be a director of a company </li></ul><ul><li>He/She should have substantial interest in the company </li></ul><ul><li>Any employee whose income from salary excluding perquisites and PF, but after deduction under section 16 is exceeding or more than 50000 </li></ul>
  15. 15. Tax free perquisites17(2 ) <ul><li>Medical benefits </li></ul><ul><li>Tea and snacks or free food or beverages provided in office or factory or through paid vouchers which are not transferable and usable only at eating joints </li></ul><ul><li>Facilities of motor cars </li></ul><ul><li>Residential accommodation provided at site </li></ul><ul><li>Facilities of club or health club and similar facilities </li></ul><ul><li>Expenses on telephone including mobile phones </li></ul><ul><li>Employers contribution to staff group insurance scheme </li></ul><ul><li>Scholarship to employees or their children paid by the employer </li></ul><ul><li>Conveyance facilities </li></ul><ul><li>Refresher courses </li></ul>
  16. 16. Continue…. <ul><li>Facility of guest house or holiday home </li></ul><ul><li>Entertainment expenses </li></ul><ul><li>Free ration to Armed Forces Personnel </li></ul><ul><li>Perquisites to government employees posted abroad </li></ul><ul><li>Certain perquisites to High Court and Supreme Court Judges </li></ul><ul><li>Rent free houses to certain persons </li></ul><ul><li>Laptop and computers provide by the employer for personal use of employee </li></ul><ul><li>Interest free or concessional loan if the aggregate dose not exceed 20000 in PY </li></ul><ul><li>Periodicals and journals required for discharge of work </li></ul><ul><li>Leave travel concessions as per terms and conditions </li></ul>
  17. 17. Latest modifications amended <ul><li>Holiday facilities3(7)(ii) </li></ul><ul><li>Free food3(7)(iii) </li></ul><ul><li>Gift3(7)(iv) </li></ul><ul><li>Credit card facilities3(7)(v) </li></ul><ul><li>Club facilities3(7)(vi) </li></ul>
  18. 18. THANK YOU By, Amudha.J
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