Understanding Employer Perks and Fringe Benefits Under the Income Tax Act of 1961: Can You Help?

Dear Seniors,

Good Afternoon!

Kindly share what the perquisites and fringe benefits are for the employer under the Income Tax Act of 1961. These expenses can be claimed by the employer while employees can avail of them as benefits.

Your guidance is much appreciated.

Graciously,
Mili

Dear Mili,

For tax exemption of employees' conveyance, medical, HRA, LTA can be useful for the employer to show in the pay structure. Beyond this, the statutory contributions and deductions like PT, ESI, EPF, are always there for the employee benefit in tax matters.

Dear Venkata,

Thank you for your reply. I am not referring to the salary structure. There are many perquisites and fringe benefits that employers can include in expenses, and employees can benefit from them. If there are any other benefits besides fringe benefits and perquisites, please share.

Thank you,
Mili

Dear Mili,

Canteen Allowances, Gift Coupons, Sodexo Passes, Medical Benefits, Employee Rewards & Awards - these all benefit employees, and employers can show their expenses for providing these benefits.

Regards,
Vineet

Dear Vineet, many thanks for your very quick assistance. Sodexo Rs. 26,400 P.A. Please let me know, can we give a canteen allowance along with Sodexo? If yes, what would be the maximum amount for the employer? Under which section can the employer show it in expenses?

I am aware of up to Rs. 5000 gift in kind being tax-free for the employer. Are gift coupons tax-free for the employer? What would be the maximum amount? I am asking for the employer only, not for the employees. In banks, gift coupons are available for employees with tax exemption but not for the employer.

Kindly guide on what would be the maximum amount for gift coupons, rewards, and awards for the employer? From where can we obtain them? Can the employer show them in expenses?

Thanks, Mili