If the cook is provided by your employer for your personal use, the entire cost incurred by the employer becomes a taxable perquisite. ✅ 100% Taxable Perquisite Includes: Salary paid to the cook Other expenses such as food, accommodation (if provided), or any reimbursement Under Section 17(2)(ii) ofRead more
If the cook is provided by your employer for your personal use, the entire cost incurred by the employer becomes a taxable perquisite.
✅ 100% Taxable Perquisite Includes:
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Salary paid to the cook
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Other expenses such as food, accommodation (if provided), or any reimbursement
Under Section 17(2)(ii) of the Income Tax Act, the term “perquisite” includes:
“The value of any benefit or amenity granted or provided free of cost or at concessional rate by the employer to the employee.”
Further, Rule 3(3) of the Income Tax Rules, 1962 specifically covers the valuation of personal attendants, including cooks.
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Yes, it is taxable as a perquisite under the Income Tax Act. As per Section 17(2)(ii) of the Income Tax Act, if your employer provides you a house at a rent lower than the market value, the difference is considered a taxable benefit (perquisite). The perquisite value is calculated as per Rule 3(1likRead more
Yes, it is taxable as a perquisite under the Income Tax Act.
As per Section 17(2)(ii) of the Income Tax Act, if your employer provides you a house at a rent lower than the market value, the difference is considered a taxable benefit (perquisite).
The perquisite value is calculated as per Rule 3(1like this:
If employer owns the house:
15% of your salary (in metro cities) or 10% or 7.5% in other cities (based on population) Less Rent actually paid by you = Taxable perquisite amount
If employer has rented the house:
Lower of actual rent paid by employer OR above % of salary Less Rent paid by you = Taxable perquisite
👉 This amount is added to your salary income and taxed as per your slab.
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