Value of benefit from service of a sweeper, a gardener, a watchman or personal attendant under Income Tax Act 1961, u/s 17(2)(iii) & rule 3(3)

By | May 30, 2015

As Per Income Tax Act 1961 “Value of benefit from service of a sweeper, a gardener, a watchman or personal attendant” includes:

i) The cost of  services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer.

ii) The actual cost in such a case shall be the total amount of salary paid or payable by the employer.

iii) Taxable amount for employee shall be the salary paid to the sweeper, gardener , watchman or a personal attendant by  the employer reduced by any amount paid by the employee for such services.

Reference:

As Per Section 17(2)(iii) & Rule 3(3), Of the Income Tax Act, 1961-

17. For the purposes of sections 15 and 16 and of this section,—

(2) “perquisite” includes—

(iii) the value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases—

( a) by a company to an employee who is a director thereof;

(b) by a company to an employee being a person who has a substantial interest in the company;

(c) by any employer (including a company) to an employee to whom the provisions of  paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head  “Salaries” (whether due from, or paid or allowed by, one or more employers), exclusive of  the value of all benefits or amenities not provided for by way of monetary payment, exceeds fifty thousand rupees:

[Explanation—For the removal of doubts, it is hereby declared that the use of any vehicle provided by a company or an employer for journey by the assessee from his residence to his office or other place of work, or from such office or place to his residence, shall not be regarded as a benefit or amenity granted or provided to him free of cost or at concessional rate for the purposes of this sub-clause;]

Rule 3:

For the purpose of computing the income chargeable under the head “Salaries”, the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules,—

(3) The value of benefit to the employee or any member of his household resulting from the provision by the employer of services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.

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