Employee Benefits Tax

Employee Benefits Tax chargeable in the hands of employees in relation to perquisites provided by Employer who is not Liable to pay FBT.

Topics Covered in this Page

Motor Car Perquisite Valuation
Other Conveyance Perquisite Valuation
Transport Facility Perquisite Valuation
Travelling, Touring, Accommodation etc., Perquisite Valuation

Employee Benefits Tax - Motor Car Perquisite Valuation

The following table gives the taxable perquisite value for use of motor-car provided by the employer during the previous year to the employee.

Car Owned or Hired	Expenses met or reimbursed	Purpose	Perquisite Value
Employee	Employee	Wholly Official	Not a Perquisite
		Wholly Private	Not a Perquisite
		Partly Official Partly Private	Not a Perquisite
Employee	Employer	Wholly Official	Not a Perquisite
		Wholly Private	Not provided for in the rules. However, Actual Expenditure incurred by Employer (including Driver's Salary) can be treated as Perquisite.
		Partly Official Partly Private	Actual expenditure incurred by the employer as reduced by the following amounts: - For cars up to 1.6 litres cc Rs.1,200 p.m. For cars more than 1.6 litres cc Rs.1,600 p.m. Driver (if provided) Rs.600 p.m.
Employer	Employer	Wholly Official	Not a Perquisite
		Wholly Private	Running and Maintenance expenditure Normal Wear and Tear (Hire Charges) Driver's Salary.
		Partly Official Partly Private	For cars up to 1.6 litres cc Rs.1,200 p.m. For cars more than 1.6 litres cc Rs.1,600 p.m. Driver (if provided) Rs.600 p.m.
Employer	Employee	Wholly Official	Not a Perquisite
		Wholly Private	Not provided for in the rules. However, Normal Wear and Tear (Hire Charges), Driver's Salary can be treated as Perquisite.
		Partly Official Partly Private	For cars up to 1.6 litres cc Rs.400 p.m. For cars more than 1.6 litres cc Rs.600 p.m. Driver (if provided) Rs.600 p.m.

Private purpose includes providing car for the employee, for his personal use, or to any member of his household.

Where any amount is charged from the employee for the use of car, then the perquisite value determined above shall be reduced by the amount so charged.

Normal wear and tear shall be taken at 10% per annum of the actual cost of the motor-car(s).

If more than one car is provided to the employee, for both private & official use, then one car would be taken as 'partly private & partly official' and all others as 'wholly private'.

If proper records are maintained to ascertain exact proportion of expenditure incurred for official use, then such exact amount can be exempt from perquisite.

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Employee Benefits Tax - Other Conveyances Owned by Employees

Where any other conveyance is owned by the employee and the actual running and maintenance charges are reimbursed by the employer, the following are the taxable perquisites:

Wholly for official purpose: No Perquisite
Wholly for Private purpose: Actual amount incurred by employer.
Partly for Official and Partly for private purpose.: Actual amount incurred by employer as reduced by Rs.600 per month.

If proper records are maintained to ascertain exact proportion of expenditure incurred for official use, then such exact amount can be exempt from perquisite.

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Employee Benefits Tax - Transport Facility Perquisite Valuation

Perquisite Value of Transport Facility: -

Taxable value of transport facility for private purposes, free of cost or at concessional fare provided by the employer during the previous year to the employee (other than a Railway or Airways Employee) or the member of the household: -

S.No.

Source

Perquisite Value

Provided by an undertaking engaged in the carriage of passengers or goods in any conveyance owned, leased or made available by any other arrangement by the undertaking.

Value at which such benefit or amenity is offered by such undertaking to the public.

In any other case

Cost incurred.

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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Employee Benefits Tax - Travelling, Touring, Accommodation etc., Perquisite Valuation

The value of perquisites for Travelling, Touring & Accommodation benefits provided by employer are as under: -

S.No.	Nature of Benefit	Perquisite Value
1	Travelling, touring, accommodation and any other expense in relation to any holiday availed by the employee or any member of his household (other than the concession referred to in Rule 2B)	Amount of expenditure incurred by the employer in that behalf.
2	Where such facility is maintained by the employer and is not available to all the employees	Value at which such facilities are offered by other agencies to the public.
3	Where the employee is on official tour and expenses are incurred in respect of any member of the household accompanying him.	Amount of expenditure so incurred.
4	Where an official tour of an employee is extended as an vacation.	Expenses incurred in relation to such extended period of stay or vacation.

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