What is meant by Perquisite as per Income Tax Ordinance 1984’s provisions?

What is meant by Perquisite as per Income Tax Ordinance 1984’s provisions?

Perquisite is a casual emolument or benefit attached to an office or position in addition to salary or wages which is availed by an employee. “Perquisite” may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. As a general rule, the taxable value of perquisites in the hands of the employees is its cost to the employer. Perquisites may be given in a verity of forms. They may be received in cash or in kind. However, specific rules for valuation of certain perquisites are briefly given below:

Residential Accommodation, Use of Motor Car, Annual Fees for Credit Card Supply of Gas, Electric Power, or Water, Use of Movable Assets, Hotel Accommodation, Travelling, Touring Accommodation etc.

Perquisites received in-kind may or may not be convertible into cash. Perquisite includes –

(a) The value of rent-free accommodation provided by the employer,

(b) The value of concession in respect of accommodation provided to assesses by his employer.

(c) The value of any benefits or amenity granted and provided free of cost or at concessional rate to specified employees.

(d) The sum paid by an employer in respect of any obligation of an employee.

Share This Post