More about Perquisites Taxation - Part II

Today we would conclude our series of write ups on taxability of perquisites. It is important to understand that perquisites benefits are enjoyed on a large scale mostly by people of higher ranking. Some of these benefits may be high on value and may not be utilised by employee to its fullest. 

Details of sub section under Sec 17	Details of perquisites	Taxable value of perquisites
2 (viii)	Gift Voucher or Coupon	Gift in cash or convertible in money is fully taxable Gifts in kind up to Rs 5000 are tax exempt, beyond which they are taxable
2 (viii)	Credit Card	Expenditure incurred by employer on credit card. Expenses incurred beyond official work is taxable
2 (viii)	Free Recreation / Club Facilities	Annual membership fees are taxable Expenses on Club facilities are exempt from tax If any facility is provided across to all employees uniformly is exempt of tax.
2 (viii)	Use of movable assets	Taxable value of perquisites a) Use of Laptops and Computers: Nil b) Movable asset other than Laptops, computers and Motor Car: 10% of original cost of the asset (if asset is owned by the employer) or actual higher charges incurred by the employer (if asset is taken on rent) less amount recovered from employee.
2 (viii)	Transfer of movable assets	Taxable value of perquisites a) Computers, Laptop and Electronics items: Actual cost of asset less depreciation at 50% for each completed year of usage by employer less amount recovered from the employee b) Motor Car: Actual cost of asset less depreciation at 20% for each completed year of usage by employer less amount recovered from the employee c) Other movable assets: Actual cost of asset less depreciation at 10% (on SLM basis) for each completed year of usage by employer less amount recovered from the employee.
10 (5)	Leave Travel Concession or Assistance (LTC/LTA), extended to an employee for going anywhere in India along with his family* *Family includes spouse, children and dependent brother/sister/parents. However, family doesn’t include more than 2 children of an Individual born on or after 01-10-1998.	The exemption shall be limited to fare for going anywhere in India along with family twice in a block of four years: i. Air fare of economy class in the National Carrier by the shortest route or the amount spent, whichever is less ii. Air-conditioned first class rail fare by the shortest route or the amount spent, whichever is less
2	Medical facilities India	Expense incurred or reimbursed by the employer for the medical treatment of the employee or his family (as above) in any of the following hospital is not chargeable to tax in the hands of the employee: a)  Hospital maintained by the employer. b)  Hospital maintained by the Government or Local Authority or any other hospital approved by Central Government
2	Medical Facilities outside India	Any expenditure incurred or reimbursed by the employer for medical treatment of the employee or his family member outside India is exempt to the extent of following (subject to certain condition): a) Expenses on medical treatment - exempt to the extent permitted by RBI. b) Expenses on stay abroad for patient and one attendant - exempt to the extent permitted by RBI. c) Cost on travel of the employee or any family or one attendant - exempt, if Gross Total Income (before including the travel expenditure) of the employee, does not exceed Rs.2,00,000.