I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include this tax amount as a part of my Salary income?

No. The I-T Act provides option to the employer to pay tax on the non-monetary perquisites. However, by virtue of Section 10(10CC), tax paid by employer (on behalf of employee) on non-monetary perquisites will be exempt from tax in the hands of employees. An employer and employee can enter into an agreement with the conditions that the tax to be paid on the salary will be borne by the employer. When tax is borne by the employer on behalf of the employee, it is considered a perquisite as defined in Section 17(2 (iv). It is in the nature of an obligation and hence, non-monetary. Thus, as per Section 10(10CC), tax paid on such non-monetary perquisites by the employer will be exempt from tax in the hands of the employee.

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I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include this tax amount as a part of my Salary income?

I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include this tax amount as a part of my Salary income?

Related Articles

My employer paid me Salary for a part of the financial year but my services were rendered for the full year. Do I need to pay tax on the entire amount of Salary due to me from the employer?

What are the different types of income that qualify as Salary under the Income Tax Act?

What is Tax-Free Salary? In case of Tax-Free Salary, is the amount of income tax paid by the employer required to be included in the taxable income from Salary?

Besides Salary income I have other income on which tax is not deductible. Do I need to inform my employer about this for deduction of tax?

The income received by me from my employer does not fit into any of the items specified in Section 15 and 17 of the IT Act. In that case, is my income still taxable as Salary income?