Employee Perquisites

[palaniappan thirukalathiappan]

Dear Experts,

Cell phone purchased by employee and is get reimbursed by the employer, which is intended for official usage. Will it be considered as taxable perk at the hands of the Employee? What is the tax impacts? Please suggest.

Thanks

[CAGOPALJI AGRAWAL]

If it is used for official purposes then it would not be perk in the hands of the employee.

AI Summary

Employer reimbursement for official-use cell phone is not taxable as a perquisite when the device is used for official purposes. If the employer reimburses the cost of a cell phone and the phone is used for official purposes, the payment is not treated as a perquisite in the hands of the employee; usage for official purposes is determinative.