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Determine the taxable value of Perquisites in the following Cases of Moveable assets being transferred by Employer to the
Employee:
Click here to refer the provisions of the Income Tax Act for determining the Perquisite value of Transfer of Moveable Assets for
A.Y. 2010-11
XYZ Ltd. sold a Ford IKON to one of its employees for a cost of Rs. 1,20,000 on 22nd June'
2009. This car was purchased by the company on 19th December' 2007 for Rs. 4,50,000 inclusive of all related costs.
Solution:-
The taxable value of the Perquisite will be determined as under:
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Original
Cost of the Car
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4,50,000.00
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Depreciation
as per Reducing Balance Method @20% for financial year 2007-08
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90,000.00
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Depreciation
as per Reducing Balance Method @20% for financial year 2008-09
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72,000.00
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Written
Down Value of the Asset as on 31.03.09
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2,88,000.00
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Less: Amount
recovered from the Employee
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1,20,000.00
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Hence
Perquisite value equals
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1,68,000.00
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ABC Ltd. sold a Double door automated Fridge to one of its employees for a cost of Rs. 5,000 on 10th September'
2009. This Fridge was purchased by the company on 21st October' 2004 for Rs. 60,000 inclusive of all related costs.
Solution:-
The taxable value of the Perquisite will be determined as under:
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Original
Cost of the Fridge
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60,000.00
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Depreciation
as per Straight Line Method @20% for financial year 2004-05
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6,000.00
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Depreciation
as per Straight Line Method @20% for financial year 2005-06
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6,000.00
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Depreciation
as per Straight Line Method @20% for financial year 2006-07
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6,000.00
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Depreciation
as per Straight Line Method @20% for financial year 2007-08
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6,000.00
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Depreciation
as per Straight Line Method @20% for financial year 2008-09
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6,000.00
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Depreciated
Value of the Asset as on 31.03.09
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30,000.00
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Less: Amount
recovered from the Employee
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5,000.00
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Hence
Perquisite value equals
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25,000.00
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ABC Ltd. sold an IBM laptop to one of its employees for a cost of Rs. 15,000 on 14th July'
2009. This Laptop was purchased by the company on 21st January' 2006 for Rs. 50,000 inclusive of all related costs.
Solution:-
The taxable value of the Perquisite will be determined as under:
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Original
Cost of the Laptop
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50,000.00
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Depreciation
as per Reducing Balance Method @50% for financial year 2005-06
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25,000.00
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Depreciation
as per Reducing Balance Method @50% for financial year 2006-07
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12,500.00
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Depreciation
as per Reducing Balance Method @50% for financial year 2007-08
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6,250.00
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Depreciation
as per Reducing Balance Method @50% for financial year 2008-09
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3,125.00
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Written
Down Value of the Asset as on 31.03.09
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3,125.00
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Less: Amount
recovered from the Employee
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10,000.00
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Hence
Perquisite value equals
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-
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In this case the perquisite value becomes NIL since there is no inherent benefit availed by the Employee on purchase of the Laptop. This is because he was required to pay more than the depreciated value of the Laptop of Rs. 3,125.
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