Perquisites under section 17(2) and 2(24)(iv)

[NEETA RATHORE]

A closely held company wanted to transfer its flat at circle rate to one of the director. Market value of the flat is higher than circle rate. Is it perquisites in the hands of director under section 17(2) and 2(24)(iv)?

AI Summary

Perquisite arising from below-market transfer to a director qualifies as taxable benefit based on valuation principles. Whether transfer of company property to a director at circle rate below market value constitutes a taxable perquisite under section 17(2) and section 2(24)(iv), hinging on valuation of the benefit and whether circle rates are determinative or only a baseline for assessing taxable perquisites.