Section 17(2)(iii) relates to perquisite i.e. any amenity or benefit provided free of cost or at concessional rates to Specified employees.
Specified employees are:
- Director of the Company
- Employee having 20% or more voting power in the employer company or
- Employee having salary* more than Rs. 50000
Salary means all taxable monetary benefit after deduction u/s 16.
Reference:
As Per Section 17(2)(iii), 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]