The benefits listed below are taxable only in the hands of specified employees only. In this regard one has to follow that one of the specified categories is one whose total earnings under the head salaries by way of monetary payments exceeds Rs. 24,000. Practically, therefore, all purposes for all employees would be covered in specified category.
(a) Provision of free boarding, the employer himself meeting the expenses in this connection.
(b) The value of free transport for private use.
(c) Provision, at the cost of the employer of holiday trips to the employees or to the members of their families other than passage for home leave covered by the exemptions narrated u/s 10.
Remember the following :
(1) Perquisites which are taxable in the case of specified employee only:
(a) Motor car or any other conveyance.
(b) Gas, electricity and water.
(d) Free education to employees children in employer’s institution.
(e) Watchmen, sweepers and gardeners.
(f) Facility of refrigerator, heaters, etc.
(g) Free boarding and lodging at Holiday Homes maintained by the employer.
(h) Issue of shares at a concessional price.
In other words, in respect of the above facilities, non-specified employees need not worry.
(2) Perquisites which are not at all taxable for any employee:
(a) Medical facilities and reimbursement of medical expenses.
(b) Refreshment during office hours.
(c) Recreational facilities.
(d) Subsidized lunch or dinner provided to all employees.
(e) Expenditure incurred on refresher courses or management development programmes.
(f) Free telephones at employees residence.
(g) Availability of goods to the employees at concessional rate from employer.
(h) Free travel passes and Privilege Ticket Orders for railway employees and their children.
(i) Perks allowed by the Government on posting abroad.