https://www.taxtmi.com/manuals?id=1135 Tax paid by an employer on an employee's non-monetary perquisite is treated as a non-deductible application of income rather than an expenditure incurred for earning business income. The stated framework distinguishes the earlier and later provisions: under the earlier rule, the employer-paid tax on non-monetary perquisites was not taxable in the employee's hands by virtue of section 10(10CC), while it was not deductible in the employer's computation under section 40(a)(v). Under the later rule under section 35(a)(ii), the same principle is stated as a disallowance of business deduction. en-us Tue, 15 Sep 2015 11:13:00 +0530 Thu, 30 Apr 2026 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=1135 Tax paid by an employer on an employee's non-monetary perquisite is treated as a non-deductible application of income rather than an expenditure incurred for earning business income. The stated framework distinguishes the earlier and later provisions: under the earlier rule, the employer-paid tax on non-monetary perquisites was not taxable in the employee's hands by virtue of section 10(10CC), while it was not deductible in the employer's computation under section 40(a)(v). Under the later rule under section 35(a)(ii), the same principle is stated as a disallowance of business deduction. Manuals Income Tax Tue, 15 Sep 2015 11:13:00 +0530 https://www.taxtmi.com/manuals?id=1135