1. Value of rent free/concessional rent accommodation provided by employer.
2. Value of the benefit granted granted either for free or at concessional rate to specified employees.
3. Any amount paid by the employer for life assurance or to effect a contract for an annuity,.
4. Value of any other fringe benefits.
This means if your employer has provided you a car or a flat then you are getting privilege or perquisites from your company. According to the Income Tax Department, perquisites are taxable. However, some perquisites are exempted from tax. We take a look into the list of perquisites that are tax free.
Perquisites exempted from tax
1. Provisional medical facilities: Value of medical treatment carried on in any hospital which is maintained by the government/any local authority/approved by the Chief - Commissioner of Income Tax. Medical reimbursement up to the amount of Rs 15,000 provided by the employer other than medical treatment.
2. Perquisite given by Government of India to an Indian citizen for rendering service outside India.
3. Official residences which are provided rent free to the Judge of High Court, Supreme Court, Official of Parliament, Union Minister, Leader of Opposition in Parliament.
However, if an employee gets interest free or concessional loan for medical reimbursement of specified diseases or when the loan is not more than Rs.20,000 then it will not be considered as perquisites. Again, if the employer provides telephone bills including mobile then it will not be considered as perquisite.
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If you are using a company's car or house then you must be aware of the fringe benefit tax. Remember, all rides are not for free.