|
Sr.No. |
Nature of
expenses incurred by the employer |
Exclusions |
Value of
Fringe Benefits |
|
I |
Any free or
concessional ticket provided by the
employer for private journeys of his employees or
their family members. |
Perquisites in
respect of which tax is paid or payable by the employee |
Cost at which
provided to general public less amount if any recovered
from employee |
|
II |
Any
contribution by the employer to an approved
superannuation fund for employees. |
Perquisites in
respect of which tax is paid or payable by the employee |
Actual amount
of contribution in excess of
Rs. 100,000/- per
Employee |
|
III |
Any specified
security or sweat equity shares
allotted or transferred directly or indirectly, by the
employer to employee free of cost or at concessional |
|
The fair market
value of the specified security or sweat equity shares on the
rate. date of exercise of option
by the employee as
reduced by the amount
actually paid by or
recovered from employee. |
|
Deemed
Fringe Benefits: |
|
A. |
Entertainment.
|
|
20% of
expenditure |
|
B. |
Provision for
hospitality of every kind by the
employer to any person, whether by way of
provision of food or beverages or in any other
manner whatsoever and whether or not such
provision is made by reason of any express or
implied contract or custom or usage of trade. |
a. any
expenditure on, or payment for, food or beverages provided by the
employer to his employees in office or factory;
b. any
expenditure on or payment through paid vouchers which are not
transferable and usable only at eating joints or outlets;
c. any
expenditure or payment through non-transferable pre-paid electronic
meal card usable only at eating joints or outlets. |
20% of
expenditure. 5% in case of employer engaged in hotel business and
employer engaged in the business of carriage of passengers or goods
by aircraft or ships. |
|
C. |
Conference.
Any expenditure on conveyance, tour and travel (including foreign
travel), or hotel, or boarding
and lodging in connection with any conference shall be deemed to be
expenditure incurred for the purposes of conference. |
Fee for
participation of employees |
20% of
expenditure |
|
D. |
Sales promotion
including publicity. |
Expenditure on advertisement –
a. being the expenditure (including
rental) on
advertisement of any form in any print
(including journals, catalogues or price lists) or
electronic media or transport system;
20% of expenditure
b. being the expenditure on the
holding of, or the
participation in, any press conference or
business convention, fair or exhibition;
c. being the expenditure on sponsorship of any
sports event or any other event organised by
any Government agency or trade association
or body;
d. being the expenditure on the
publication in any
print or electronic media of any notice required
to be published by or under any law or by an
order of a court or Tribunal;
e. being the expenditure on
advertisement by way
of signs, art work, painting, banners, awnings,
direct mail, electric spectaculars, kiosks,
hoardings, bill boards, display of products or by
way of such other medium of advertisement; and
f. being the expenditure by way of payment to any
advertising agency for the purpose of clauses
(a) to (e) above
g. being expenditure incurred on
distribution of
free samples of medicines or medical equipments
to doctors up to assessment year 2007-08.
From assessment year 2008-09, expenditure on
distribution of samples either free of cost or at
concessional rate;
h. being expenditure by way of payment
to any
person of repute for promoting the sale of
goods or services. |
20% of
expenditure |
|
E. |
Employees’
welfare. |
Any expenditure incurred or payment
made to
a. fulfil any statutory obligation; or
b. mitigate occupational hazards; or
c. provide first aid facilities in the hospital or
dispensary run by the employer;
d. provide crèche facility for the children of the
employee; or
e. sponsor a sportsman, being an employee; or
f. organize sports events for employees. |
20% of
expenditure |
|
F. |
Conveyance.
|
|
20% of
expenditure
5% in case of employer
engaged in the business
of manufacture or
production of
pharmaceuticals/
computer software and
in construction business. |
|
G. |
Use of hotel,
boarding and lodging facilities. |
|
20% of
expenditure.
5% in case of employer
engaged in the business
of manufacture or
production of
pharmaceuticals/
computer software and
employer engaged in the
business of carriage of
passenger or goods by
aircrafts or ships |
|
H. |
Repair, running
(including fuel), maintenance of
motorcars and the amount of depreciation thereon |
|
20% of
expenditure.
5% in case of employer
engaged in the business
of carriage of passengers
or goods by motorcar. |
|
I. |
Repair, running
(including fuel) and
maintenance of aircrafts and the amount of
depreciation |
|
20% of
expenditure.
Nil in case of employer
thereon. engaged in the
business of carriage of
passengers or goods by
aircraft. |
|
J. |
Use of
telephone (including mobile phone). |
Expenditure on
leased telephone lines |
20% of expenditure
|
|
K. |
Maintenance of
any accommodation in the
nature of guest house. |
Omitted w.e.f.
Assessment Year 2009-10. |
20% of
expenditure |
|
L. |
Festival
celebrations. |
|
50% of
expenditure w.e.f.
Assessment Year 2009-10
20% of such expenditure. |
|
M. |
Use of health
club and similar facilities. |
|
50% of
expenditure |
|
N. |
Use of any
other club facilities. |
|
50% of
expenditure |
|
O. |
Gifts. |
|
50% of
expenditure |
|
P. |
Scholarships. |
|
50% of
expenditure |
|
Q. |
Tour and travel
(including foreign travel). |
|
5% of
expenditure |
