Limit on allowance in respect of benefit, amenity or perquisite under clause (c) (iii)/clause (a)(v) - Reimbursement of certain expenses/payments whether form part of perquisite to be restricted to one-fifth of salary https://www.taxtmi.com/circulars?id=4467 Employer expenditures that provide benefits, amenities or perquisites to employees are deductible only to a limited extent, with the amount measured against salary as defined in rule 2(h) of Part A of the Fourth Schedule (including dearness allowance only where agreed). Reimbursements and in kind benefits (medical, utilities, domestic staff, rent free accommodation, motorcar, club bills, etc.) are treated as perquisites within that limit. Bonus or commission constitute salary when contractual, statutory, or otherwise binding; gratuitous or discretionary payments are perquisites. en-us Tue, 29 Jun 1971 00:00:00 +0530 Tue, 29 Jul 2008 18:30:00 +0530 TaxTMI RSS Generator Limit on allowance in respect of benefit, amenity or perquisite under clause (c) (iii)/clause (a)(v) - Reimbursement of certain expenses/payments whether form part of perquisite to be restricted to one-fifth of salary https://www.taxtmi.com/circulars?id=4467 Employer expenditures that provide benefits, amenities or perquisites to employees are deductible only to a limited extent, with the amount measured against salary as defined in rule 2(h) of Part A of the Fourth Schedule (including dearness allowance only where agreed). Reimbursements and in kind benefits (medical, utilities, domestic staff, rent free accommodation, motorcar, club bills, etc.) are treated as perquisites within that limit. Bonus or commission constitute salary when contractual, statutory, or otherwise binding; gratuitous or discretionary payments are perquisites. Circulars Income Tax Tue, 29 Jun 1971 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4467