• Taxable Perquisites. ...
• Exempted Perquisites. ...
• Perquisites taxable only by employees.

What are perquisites examples?

Perquisites are emoluments or benefits received from an employer, in addition to salary. For example, Rent-free accommodation. Free electricity, gas and water supply.

What are perquisites in HRM?

Perquisites are a benefit which the employees are entitled to because of their job or position they hold in the company. ... It can be a car given by the company's side, rent-free accommodation, etc. An employee can exchange wages for some other benefit. It is known as 'salary exchange' and 'salary packaging'.

What are perquisites in salary?

“Perquisite” may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. “Perquisite” is defined in the section 17(2) of the Income tax Act as including: ... (iv) Value of any benefit/amenity granted free or at concessional rate to specified employees etc.

What gratuity means?

Gratuity is a lump sum amount paid by the employer to the employee as a token of appreciation for the services they have provided towards the company. It is important to know what are the eligibility and the amount of gratuity that an employee will receive.

What do you mean by perquisites what are its various kind?

Types of perquisites

Rent-free/concessional rent accommodation provided by the employer. Any amount paid by the employer in respect of an obligation that was actually payable by the assessee. Value of any benefit/amenity granted free or at a concessional rate to specified employees.

What is form 16 and 12B?

The form furnishes the details of your income earned from the previous employer. You are required to submit Form 12B to your new employer. Form 12B is filled with details from your salary slip and Form 16 issued by your previous employer. Details such as TAN and PAN of your previous employer. Breakup of your salary.

What is Form No 12?

Form 12BA is a statement that details regarding the perquisites and other fringe benefits along with profits in lieu of an employee's salary. Perquisites, or perks as they are called, are granted to employees for their service.

What is Form 12A?

12A registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation.

How perquisites are calculated?

Rent paid by the employer or 15% of salary (whichever is lower) minus rent paid by employer. Value of perquisites as calculated in case of unfurnished accommodation shall be increased by 10% p.a. cost of furniture or actual rent of furniture minus amount paid by employee.

What are casual incomes?

What is Casual Income? ... It's an income which is earned by chance and not likely to occur again in a year. This earning is neither anticipated nor provided for in any agreement. Incomes from winning lotteries, card games, game shows, horse races, crossword puzzles or any other games come under casual incomes.

What is leave salary?

The accumulated leave standing to the credit of an employee may be availed by the employee during his service time or, subject to service rules, such leaves may be encashed at the time of retirement or leaving the job. Encashment of leave by surrendering leave standing to one's credit is known as 'leave salary'.

What is PF and gratuity?

Unlike employee provident fund which includes employee's contribution, the gratuity amount is entirely paid by the employer. ... Gratuity amount is payable at the time of resignation, retirement /superannuation, layoff or voluntary retirement, death, retrenchment, disability or termination.

What is basic salary pay?

Basic salary is the base income of an individual. Basic salary is the amount paid to employees before any reductions or increases due to overtime or bonus, allowances (internet usage for those who work from home or communication allowance).

Is perquisite taxable?

According to the Finance Act, 2005, perquisites are taxed by the government in case these perks are provided or are deemed to be provided to employees by employers. The rate at which perquisites are taxed is 30% of the value of fringe benefits.

Is pin money an income?

Pin Money is therefore, treated at par with salary or any business she may have been running on her own. It is pertinent to note that such Pin Money should be considered similar to “Stree Dhan”, an amount collected by the bride out of the gifts and contributions to her by relatives and well-wishers.

Who is called as a non resident?

A non-resident is an individual who mainly resides in one region or jurisdiction but has interests in another region. In the region where they do not mainly reside, they will be classified by government authorities as a non-resident.

What are the characteristics of perquisites?

Perquisites have the following characteristics: Perquisites can be received regularly or casually; Perquisites can be received in cash or in kind and if in kind, it must have money's worth and are convertible into money.

What do you mean by perquisites give five examples of tax free perquisites?

As is the case with allowances, the effect of perquisites on salary income largely depends on the type of perquisites that you receive. While there are tax-free perquisites such as rent free accommodation, supply or water or gas, taxable perquisites include education for children, domestic help's service etc.

How are perquisites generally characterized?

A perquisite is a special benefit for executives that are usually non-cash items. Another common term for a perquisites is a "perks". It is something gained from a place or employment over and above the ordinary salary or fixed wages for services rendered. Certain perquisites are treated as taxable income.