Perquisites - Sale of Moveable Assets - (New) Rule 15(5)(a) / (Old) Rule 3(7)(viii)

Taxable perquisite valuation for employer-transferred movable assets depends on depreciated cost and employee consideration paid.

Taxable perquisite arises when an employer transfers a movable asset to an employee or household member, including at a concessional price. The value is computed by reducing the cost of the asset by depreciated value and the amount paid by the employee. Depreciation is applied on a reducing-balance basis at 50% for computers and electronic items, 20% for motor cars, and 10% for other assets, for each completed year of use. The earlier rule similarly values the transfer by deducting depreciation and consideration recovered from the employee.