Benefit derived by the employees not taxed as perquisites.

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....t that instances have come to his notice that companies sell their vehicles to their employees at a nominal prices and the benefit derived by the employees are not taxed as perquisites in their hands. 2. The above observation of the Comptroller & Auditor General has been considered by the Board. Section 17(2)(iii) of the Income-tax Act, 1961 lays down that the value of any benefit or amenity gr....

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.... and the sale price is taxable as a perquisite within the meaning of section 17(2)(iii) of the Income-tax Act, 1961. 3. The Income-tax Officers assessing the employer should specially enquire at the time of their assessment whether any assets have been sold to their directors or employees falling in the categories mentioned in para 1 above. If such a sale has been effected an examination should....