Salary threshold rejig for tax-free perquisites soon





Salary threshold rejig for tax-free perquisites soon

MUMBAI: Budget 2025 provides that specific amenities and benefits received by an employee with a salary below a certain limit would be exempt from being treated as perquisite. At present, perquisites (other than those exempt) are part of salary income and are subject to tax at the applicable slab rates. The details, in this regard, will be announced later.
Supreme Court advocate Deepak Joshi said, “A rule making power in favour of the Central Board of Direct Taxes (CBDT) has been prescribed. Instead of a monetary threshold built in the statute itself, CBDT can exercise the power to increase the threshold and benefit employees.” A notification by the CBDT, which may follow at a later date, will show the extent to which employees will stand to benefit.
At present, the value of any benefit or amenity provided by any employer to an employee is not treated as a perquisite if the salary income of such employee is below Rs 50,000. Secondly, any expenditure incurred by the employer for overseas treatment of the employee or his/her family members is not a taxable perquisite if the gross total income of such employee is less than Rs 2 lakh. A revision in the thresholds in both the above instances, has been indicated in Budget 2025.
Rahul Charkha, partner at Economic Laws Practice said, “The proposed widening of the threshold limits is a welcome move from the taxpayers’ perspective as these threshold limits were virtually insignificant from a salaried employee’s perspective. While the increased threshold limits are yet to be prescribed, a larger threshold limit would be appropriate, considering the inflation and cost of living.”
It has also been clarified that the proposed amendment will not cover a director of a company or a person, who has a substantial interest in the company.

!(function(f, b, e, v, n, t, s) { function loadFBEvents(isFBCampaignActive) if (!isFBCampaignActive) return;

(function(f, b, e, v, n, t, s) if (f.fbq) return; n = f.fbq = function() n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments); ; if (!f._fbq) f._fbq = n; n.push = n; n.loaded = !0; n.version = '2.0'; n.queue = []; t = b.createElement(e); t.async = !0; t.defer = !0; t.src = v; s = b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t, s); )(f, b, e, 'https://connect.facebook.net/en_US/fbevents.js', n, t, s); fbq('init', '593671331875494'); fbq('track', 'PageView'); ;

function loadGtagEvents(isGoogleCampaignActive) if (!isGoogleCampaignActive) return;

var id = document.getElementById('toi-plus-google-campaign'); if (id) return;

(function(f, b, e, v, n, t, s) t = b.createElement(e); t.async = !0; t.defer = !0; t.src = v; t.id = 'toi-plus-google-campaign'; s = b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t, s); )(f, b, e, 'https://www.googletagmanager.com/gtag/js?id=AW-877820074', n, t, s); ;

function loadSurvicateJs(allowedSurvicateSections = []){ const section = window.location.pathname.split('/')[1] const isHomePageAllowed = window.location.pathname === '/' && allowedSurvicateSections.includes('homepage')

if(allowedSurvicateSections.includes(section) || isHomePageAllowed) (function(w)

function setAttributes() var prime_user_status = window.isPrime ? 'paid' : 'free' ; w._sva.setVisitorTraits( toi_user_subscription_status : prime_user_status );

if (w._sva && w._sva.setVisitorTraits) setAttributes(); else w.addEventListener("SurvicateReady", setAttributes);

var s = document.createElement('script'); s.src="https://survey.survicate.com/workspaces/0be6ae9845d14a7c8ff08a7a00bd9b21/web_surveys.js"; s.async = true; var e = document.getElementsByTagName('script')[0]; e.parentNode.insertBefore(s, e); )(window);

}

window.TimesApps = window.TimesApps || ; var TimesApps = window.TimesApps; TimesApps.toiPlusEvents = function(config) var isConfigAvailable = "toiplus_site_settings" in f && "isFBCampaignActive" in f.toiplus_site_settings && "isGoogleCampaignActive" in f.toiplus_site_settings; var isPrimeUser = window.isPrime; var isPrimeUserLayout = window.isPrimeUserLayout; if (isConfigAvailable && !isPrimeUser) loadGtagEvents(f.toiplus_site_settings.isGoogleCampaignActive); loadFBEvents(f.toiplus_site_settings.isFBCampaignActive); loadSurvicateJs(f.toiplus_site_settings.allowedSurvicateSections); else var JarvisUrl="https://jarvis.indiatimes.com/v1/feeds/toi_plus/site_settings/643526e21443833f0c454615?db_env=published"; window.getFromClient(JarvisUrl, function(config) if (config) const allowedSectionSuricate = (isPrimeUserLayout) ? config?.allowedSurvicatePrimeSections : config?.allowedSurvicateSections loadGtagEvents(config?.isGoogleCampaignActive); loadFBEvents(config?.isFBCampaignActive); loadSurvicateJs(allowedSectionSuricate);

)

; })( window, document, 'script', );





About The Author