Assets Taxable Under Wealth Tax in India

 Types of Perquisites

In the context of Indian Income Tax, perquisites are benefits or facilities provided by an employer to an employee in addition to the regular salary or wages. These perquisites are taxable under Section 17(2) of the Income Tax Act, 1961, and are categorized based on their taxability.

Types of Perquisites:

1. Taxable Perquisites
   These are fully taxable and must be included in the employee's income for taxation purposes:
• Rent-free accommodation provided by the employer.
• Use of a car for personal purposes.
• Employer contributions to a superannuation fund exceeding ₹7,50,000 per annum.
• Interest-free loans or loans provided at a concessional rate.
• Free or subsidized meals provided by the employer beyond prescribed limits.
• Reimbursement of personal expenses like travel or utilities.

2. Exempted Perquisites
   These are not taxable, either fully or up to a specified limit:
• Medical facilities provided in the employer's own hospital or in government-approved hospitals.
• Health insurance premiums paid by the employer for the employee under a group insurance policy.
• Provision of laptops, mobile phones, and other office-related equipment for official use.
• Free refreshments during office hours.
• Perquisites provided to government employees working outside India.

3. Taxable in Specified Cases
   These perquisites are taxable only for specified employees, such as directors or employees with substantial control:
• Free or concessional education provided to employees' children.
• Free or subsidized housing for specified employees.
• Employer-provided club memberships.
• Gifts or vouchers exceeding ₹5,000 in a financial year.

4. Deemed Perquisites
   Certain benefits deemed as perquisites under the Income Tax Act:
• Value of any security or sweat equity shares allotted or transferred to an employee at a concessional rate.
• Contributions made by the employer to approved retirement funds exceeding specified limits.

Taxability Calculation:

The valuation of perquisites for tax purposes is determined as per the rules prescribed by the Income Tax Department. For example:

• Accommodation: Taxable based on the type of accommodation and the city of residence.
• Car: Taxable based on engine capacity and its usage (personal vs. official).

Let me know if you'd like details about the valuation rules for specific perquisites!