Free supply of gas, electricity, or water for personal use is fully taxable as a perquisite. The amount actually paid or incurred by your employer will be added to your salary income for tax purposes. Section 17(2)(ii): “Perquisite includes the value of any benefit or amenity provided free of cost oRead more
Free supply of gas, electricity, or water for personal use is fully taxable as a perquisite. The amount actually paid or incurred by your employer will be added to your salary income for tax purposes.
Section 17(2)(ii):
“Perquisite includes the value of any benefit or amenity provided free of cost or at concessional rate by the employer…”
Tax Treatment under Rule 3(4):
If an employer provides free gas, electricity, or water for personal use (not for official use), the taxable value is calculated as follows:
See less🧾 When facility is owned or maintained by the employer:
The actual cost incurred by the employer is added to your salary as taxable perquisite.
🧾 When facility is provided via reimbursement or direct payment to utility provider:
The amount paid by the employer is considered your perquisite income.
My children are getting benefit of free education in my employer’s institute? Whether it is chargeable to tax? Yes, the value of free education provided by your employer to your children is considered a taxable benefit (perquisite) under the Income Tax Act. As per Section 17(2)(v) of the Income TaxRead more
My children are getting benefit of free education in my employer’s institute? Whether it is chargeable to tax?
Yes, the value of free education provided by your employer to your children is considered a taxable benefit (perquisite) under the Income Tax Act.
As per Section 17(2)(v) of the Income Tax Act, read with Rule 3(5) of the Income Tax Rules:
If your employer runs a school or has an arrangement with any educational institution to provide free or concessional education to your children, it is treated as a taxable perquisite.
However, there is an exemption:
➤ If the cost of education per child does not exceed ₹1,000 per month, then the benefit is fully tax-free.