Claim these Tax Free Perquisites- Reduce Taxes on Salary

Perquisites are the non monetary benefits provided by the employer to his employees in addition to their salary. Some of the perquisites are taxable in the hands of employees and some are fully exempt in their hands. Following Perquisites are exempt in the hands of all the employees: 1. Medical Facility or medical reimbursement: (a) Medical Facility: The value of any medical treatment provided to an employee or any member of his family in a hospital, dispensary or a nursing home maintained by the employer shall be a tax free perquisite. (b) Medical reimbursement: Any sum paid by the employer in respect of any expenditure incurred by the employee on his medical treatment or treatment of any member of his family subject to maximum of Rs. 15,000 in the previous year. 2. Refreshment facilities: Refreshment provided by an employer to all employees during working hours in office premises. 3. Free Meal: Free meal provided by the employer during working hours or through paid non-transferable vouchers if value does not exceeds Rs. 50 per meal. 4. Training of employees: Any expenditure incurred by the employer, for providing training to the employees or by way of payment of fees of refreshers courses attended by the employees. 5. Use of health club, sports and similar facilities provided uniformly to all employees by the employer. 6. Employer’s contribution: Employer’s contribution to superannuation fund of the employee or provided such contribution does not exceed Rs.1, 00,000 per employee per year. 7. The premium paid by the employer on an accident policy taken out by it in respect of the employee would not be a taxable perquisite. 8. Motor car provided by the employer to the employee or expenses incurred by the employer in connection with motor car belonging to the employee (for purpose other than exclusively for personal purpose) shall be a tax free perquisite in the hand of the employee. 9. Interest free /concessional loan an amount not exceeding Rs. 20,000. 10. Free educational facility provided in an institute owned /maintained by the employer to children of employee provided cost of value does not exceed Rs. 1,000 per month per child. (no limit on number of children) 11. Gift upto Rs. 5,000 in aggregate during a financial year in case the gift is provided by such employer. 12. The value of any benefit provided free of cost or a concessional rate by a company to its employees by way of allotment of shares, debentures or warrant under the Employees Stock Plan or Scheme in accordance with the guidelines issued by the central government. We at have the expertise in handling complicated individual taxation issues. Do contact us immediately; we are here to help in solving all your tax issues.

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