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Taxable Employee Benefits

Taxable Employee Benefits provided by Employer who is not Liable to pay FBT.

Topics Covered in this Page

Perquisite Value of Food
Perquisite Value of Gift or Voucher or Token
Perquisite Value of Expenses charged to Credit Cards
Perquisite Value of Club Facilities
Other Perquisites

Taxable Employee Benefits - Perquisite Value of Food

The following table gives the taxable value of food provided by the employer during the previous year to the employee: -

S.No.

Nature of Benefit

Perquisite Value

Free Meals Provided at the office or business premises during office hours or through paid non-transferable vouchers usable only at eating joints.

If the value is up to Rs.50 per meal, it is not taxable.
If the value is more than Rs.50 per meal, it is taxable.

Free Meals in other cases

Taxable.

Snacks, Coffee, Tea, Non-alcoholic Beverages provided during the office hours or to free meals during working hours provided in remote area or an offshore installation.

Fully exempt.

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Taxable Employee Benefits - Perquisite Value of Gift or Voucher or Token

The value of any gift or voucher or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise shall determined as equal to the amount of such gift.

However, where the value of such gift, voucher or token, as the case may be, is below Rs.5,000 in the aggregate during the previous year, the value of perquisite shall be taken as Rs.Nil.

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Taxable Employee Benefits - Perquisite Value of Expenses charged to Credit Cards

The following shall be taken as the value of perquisite chargeable to tax, in respect of expenses charged to credit card: -

S.No.

Nature of Benefit

Perquisite Value

Amount of expenses including membership fees and annual fees charged to a Credit Card (including any add-on card).

Provided by the employer or otherwise, paid for or reimbursed by the employer.

Where such payment is incurred wholly and exclusively for official purposes and the following conditions are fulfilled:

Employer maintains complete details of such expenditure including

the nature of expenditure.
Date of expenditure and

It is certified by the employer that such expenditure was incurred wholly and exclusively for the performance of official duties.

Not a perquisite.

Where the employee pays any amount for the above service, the same shall be reduced from the perquisite value determined above.

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Taxable Employee Benefits - Perquisite Value of Club Facilities

The following shall be taken to be the value of perquisite chargeable to tax, in respect of expenses charged to club facility: -

S.No.	Nature of Benefit	Perquisite Value
1	Amount of expenses including annual fees or periodical fees incurred in a club by the employee or any member of his household.	Value of benefit to the employee paid for or reimbursed by the employer.
2	In case such facilities are enjoyed by the employee or any member of the household out of Corporate membership obtained by the employer.	Value of benefit to the employee paid for or reimbursed by the employer, except "Initial Fee".
3	Where such payment is incurred wholly and exclusively for business purposes and the following conditions are fulfilled: - Employer maintains complete details of such expenditure including date of expenditure, the nature of expenditure, and its business expediency. It is certified by the employer that such expenditure was incurred wholly and exclusively for the performance of official duties.	Not a perquisite.
4	Use of health club, sports and similar facilities provided uniformly to all employees by the employer.	Not a perquisite.

Where the employee pays any amount for the above service, the same shall be reduced from the perquisite value determined above.

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Taxable Employee Benefits - Other Perquisites

Value will be cost to the employer under an arm's length transaction as reduced by the employee's contribution.

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