Who is specified employee?
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
A “Specified Employee” is a category of employee for whom certain perquisites (non-monetary benefits) provided by the employer are fully taxable under Section 17(2) of the Income Tax Act, 1961, read with Rule 3 of the Income Tax Rules, 1962. As per Explanation (iv) to Section 17(2) of the Income TaxRead more
A “Specified Employee” is a category of employee for whom certain perquisites (non-monetary benefits) provided by the employer are fully taxable under Section 17(2) of the Income Tax Act, 1961, read with Rule 3 of the Income Tax Rules, 1962.
As per Explanation (iv) to Section 17(2) of the Income Tax Act, an employee is called a Specified Employee if he/she meets any one of the following conditions:
✅ Conditions:
Director of the company
Employee with substantial interest (i.e., owns ≥20% of equity shares in the company)
Employee whose salary (excluding non-monetary benefits) exceeds ₹50,000 per annum
🟡 Note: Salary here includes basic, DA (if part of retirement), bonus, commission, allowances, etc.
See less