Here is all about what are tax free perquisites. Tax-free perquisites are non-monetary benefits provided by an employer to employees that are exempt from income tax under the Income Tax Act, 1961. These perks enhance employee compensation while offering tax savings.
Tax Free Perquisites Meaning
Below are common tax-free perquisites:- Up to Rs. 15,000 per annum was previously tax free for medical expenses incurred by employees or their families. However, under the new tax regime, this benefit is no longer applicable.
- Contributions by the employer up to 12% of the employee\'s basic salary are tax-exempt.
- Gratuity received by employees is tax-free up to Rs. 20 lakh for private-sector employees upon retirement or resignation.
- LTA is tax-exempt for travel expenses incurred within India, subject to specific conditions. It can be claimed twice in a block of four years.
- Meal coupons, like Sodexo or Zeta, are tax-free up to Rs. 50 per meal, provided they are used for food and beverages.
- Facilities like rent-free accommodation or vehicle provisions are often tax-free for government employees.
- Exempt up to Rs. 100 per month per child (education) and Rs. 300 per month per child (hostel), for a maximum of two children.
- Reimbursement for telephone and internet expenses used for official purposes is tax-free.
- Interest Income
- Capital Gains
- Rental Income
- Freelance or Side Income
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What Are Tax Free Perquisites?
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2024-12-30T09:04:35+00:00 2024-12-30T09:04:36+00:00Comment
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