https://www.taxtmi.com/circulars?id=4485 Expenditure by an employer that provides benefits, amenities or perquisites to employees is deductible only up to one fifth of the salary payable to the employee; "salary" for this purpose follows rule 2(h) of Part A of the Fourth Schedule and includes dearness allowance only if employment terms so provide, excluding other allowances and perquisites. Reimbursements and in kind provisions such as medical expenses, utilities, domestic servants, club bills, rent free accommodation and motorcar use qualify as perquisites subject to the one fifth ceiling. Bonus and commission are classified by reference to their contractual or gratuitous character. en-us Sat, 04 Mar 1972 00:00:00 +0530 Wed, 30 Jul 2008 10:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4485 Expenditure by an employer that provides benefits, amenities or perquisites to employees is deductible only up to one fifth of the salary payable to the employee; "salary" for this purpose follows rule 2(h) of Part A of the Fourth Schedule and includes dearness allowance only if employment terms so provide, excluding other allowances and perquisites. Reimbursements and in kind provisions such as medical expenses, utilities, domestic servants, club bills, rent free accommodation and motorcar use qualify as perquisites subject to the one fifth ceiling. Bonus and commission are classified by reference to their contractual or gratuitous character. Circulars Income Tax Sat, 04 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4485