PERQUISITES EXEMPT FROM INCOME TAX



Posted on 06-05-2016        By ADMIN



PERQUISITES EXEMPT FROM INCOME TAX

 Some instances of perquisites exempt from tax are given below: 

Provision of medical facilities (Proviso to Sec. 17(2)): Value of medical treatment in any hospital maintained by the Government or any local authority or approved by the Chief Commissioner of Income-tax. Besides, any sum paid by the employer towards medical reimbursement other than as discussed above is exempt upto Rs.15,000/-.


Perquisites allowed outside India by the Government to a citizen of India for rendering services outside India (Sec. 10(7))

Rent free official residence provided to a Judge of High Court or Supreme Court or an Official of Parliament, Union Minister or Leader of Opposition in Parliament. 

No perquisite shall arise if interest free/concessional loans are made available for medical treatment of specified diseases in Rule 3A or where the loan is petty not exceeding in the aggregate Rs.20,000/- No perquisite shall arise in relation to expenses on telephones including a mobile phone incurred on behalf of the employee by the employer.




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