Cbdt May Issue New Rules On Perquisites

If you have done your tax-planning for the current financial year, be prepared for some changes.

The revenue department is expected to come out with the new rules on perquisites by the month-end, specifying the types of perquisites and valuation methods for taxing them.

Along with the rules, the Central Board of Direct Taxes (CBDT) will also issue a separate form for giving details about the perquisites paid to an employee. The form will make it obligatory for the employer to declare the perquisites paid to an employee.

Sources said that only reimbursements for discharge of official duties will be treated as perquisites.

 

They added that CBDT has studied the salary structure of various companies, both Indian and multinationals, and it is currently finalising the list of expenses to be treated as perquisites.

The perquisite form will have to be submitted by the companies along with Form 16A from the assessment year 2002-03 giving full details of the perquisites paid to the employees.

According to a senior finance ministry official,