Overview of Perquisites - (New) Section 17(1) / (Old) Section 17(2)

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.... value of any benefit or amenity granted or provided free of cost or at concessional rate in the following cases:- • (i) by a company to an employee, who is a director thereof or who has a substantial interest in the company; • (ii) by any employer (including a company) to an employee [other than employee referred in sub-clause (i)] whose income under the head "Salaries" by way of monetary payment (from one or more employers) exceeds of Rs. 4,00,000.  (d) ESOPs / Sweat equity shares  • the value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the current employer, or former employer, free of cost or at concessional rate t....

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....o the balance at the credit of the fund or scheme referred to in clause (h), computed according to manner specififed under rule 16 of Income Tax Rule, 2026. Meaning of Important Term • "fair market value" means the value determined in accordance with the method, as may be prescribed; • "family", in relation to an individual, shall have the meaning assigned to it in Schedule III (Note 2); • "gross total income" shall have the meaning assigned to it in section 122(10); • "hospital" includes a dispensary or a clinic or a nursing home; • "option" means a right but not an obligation, granted to an employee to apply for the specified security or sweat equity shares at a....

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.... Section 17(2), it is clarified that accommodation shall be deemed to have been provided at a concessional rate, if the value of accommodation computed in such manner prescribed under Rule 3(1) of the Income-tax Rule, 1962, exceeds the rent recoverable from, or payable by, the assessee; Free/concessional benefits or amenities (based on employee status) iii. Value of any benefit or amenity granted or provided free of cost or at concessional rate to SPECIFIED EMPLOYEES i.e. • Motor car                                      &nbs....

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....eds 50,000/- for the P/Y Payments made by employer for employee's personal obligations iv.  Any sum paid by the employer in respect of any obligation on behalf of the employee Employer's payment for life assurance or annuity v.  Sum payable by the employer to effect an assurance on the life of the employee or to effect a contract for an annuity other than • recognised provident fund or • an approved superannuation fund or • a Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or, as the case may be, • section 6C of the Employees' Provident Funds and Miscellaneous Prov....

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....sp;                                             As per Rule: 3(7)(i) • Travelling, touring & accommodation other than LTC                   As per Rule: 3(7)(ii) • Free food & beverages to the employees during office hours      As per Rule: 3(7)(iii) • Gift to the employees                  &nbs....