In the Finance Act 2009 FBT was abolished. Consequently all perquisites were to be taxable in the hands of employees. The perquisite valuation rules have been notified by the CBDT vide Notification No94 dated 18 -12-2009. CBDT has amended Rule 3 in respect of valuation of perquisite. .
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In the Finance Act 2009 FBT was abolished. Consequently all perquisites were to be taxable in the hands of employees.
The perquisite valuation rules have been notified by the CBDT vide Notification No94 dated 18 -12-2009.
CBDT has amended Rule 3 in respect of valuation of perquisite.New perquisite valuation rules
The accommodation may be provided:
oWhich is owned by employer.
o which is taken on lease/ rent by employer.
o Actual lease rent.
o 15% of salary.
Central /state government rules.
population of the city where accommodation is provided and it is:
o 10% of the cost of furniture if furniture owned or,
o actual hire charges paid for the furniture.
1. Car owned/hired by employer, exclusively used for official purpose and expenses borne by the employer: Nil.
2. Car owned/hired by employer, exclusively used for private purpose by employee and expenses borne by the employer Actual exp incurred by employer, + 10% of cost p.a. towards wear & tear less amount recovered from employee, if any.
3.Used partially for work, then monthly valuation will be as per table given below
4. Any other automotive owned by employee, used partially for work and expenses reimbursed by employer : actual expenses reimbursed (-) 900.
upto Rs. 1000 per child per month, then perquisite value will be taken as NIL.
Any loan given free of interest or concessional interest shall be a taxable perquisite and calculated as follows:
(a) complete details in respect of such expenditure are maintained by the employer which may inter alia, include the date of expenditure, the nature of expenditure and its business expediency;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
Depreciation will be calculated.
@ 50% on reducing balance for computers and electronic items.
@ 20% on reducing balance for motor car.
@ 10% on cost for other assets.