Perquisites are various non-wage compensations provided to employees in addition to their normal wages or salaries. These are the benefits or amenities provided by the employer free of cost or at a concessional rate. In other words perquisites are benefits in addition to normal salary to which employee has a right by virtue of his employment.

Perquisites are taxable as a part of salary as per the India Income tax laws.  Section 17 of the Income-Tax Act 1961 provides that taxable salary includes perquisites.  As per this Section taxable perquisites includes:

• the value of rent-free accommodation or accommodation at concessional rate provided to the assessee by his employer;
• any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable the assessee (except amount paid or reimbursed in connection with medical expenses or health insurance)
• interest free / concessional loan
• providing use of movable asset
• transfer of movable asset
• any sum payable by the employer whether directly or through a fund to effect an assurance on the life of the assessee or to effect a contract for an annuity except such amount paid through-

(i)                 recognised provident fund or an approved superannuation fund, or

(ii)               deposit linked insurance fund as prescribed under section 17(2)(v)

• any other benefit or amenity, service, right or privilege (not being telephone or mobile facility)

Tax Returns for Financial Year 2010 -11 (March 2011) has started.  Just mail us Form16/ Salary Certificate and details of other income, at  info@taxmantra.com . We would take it from there to file your return of income.

Taxmantra.com provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) – please see this – Services Offered.

Once you file your tax returns with us, you will agree to the fact that Taxmantra.com provides the most easiest and efficient way of filing tax returns in India.

Taxmantra.com- Providing Complete Online Tax Solutions for Individuals, Not Just Returns .