Chapter No. 26 - Salary - Perquisites - Sale of Moveable Assets - Rule 3(7)(viii)

The taxable value of the perquisite in the hands of Z, A, B shall be determined as follows:

Particulars	CAR	COMPUTER	FRIDGE
Cost of the asset as on 15th May 2012	6,96,000	1,17,000	40,000
Less: Depreciation for the first year ending 14th May 2013 (20% of 6,96,000, 50% of 1,17,000, 10% of 40,000)	1,39,200	58,500	4,000
Balance on 15th May 2013	5,56,800	58,500	36,000
Less: Depreciation for the first year ending 14th May 2014 (20% of 5,56,800, 50% of 58,500, 10% of 40,000)	1,11,360	29,250	4,000
Balance on 15th May 2014	4,45,440	29,250	32,000
Less: Sale Consideration	2,10,000	24,270	1,000
Taxable Value of Perquisite	2,35,440	4,980	31,000

 

Perquisite valuation: employer sale of movable assets to employees taxed as written down value less sale consideration. Taxable perquisite on employer sale of movable assets to employees is the difference between the employer's written down value (after applying depreciation to cost to reach the balance on the relevant date) and the sale consideration; the document demonstrates this by computing successive depreciated written down values for a car, computer and fridge and subtracting the sale prices to determine the perquisite amounts.