You are here: Home » Markets » News
Business Standard

A Mixed Bag

The Smart Investor  |  BUSINESS STANDARD 

This is the concluding part of our series on the recently amended rules on perquisites and payments

Finance Minister Yashwant Sinha has changed many of the ground rules relating to perquisites. In the fourth and last part of our series, we take a detailed look at the implications of the latest changes.

Credit cards

Any expenditure, including membership and annual fees, charged to a credit card and reimbursed by the employer will be the value of the perquisite chargeable to tax.

Comments: The draft had similar provisions.

However, it had a provision that 30 per cent of the amount would be allowed as official entertainment even if records were not kept. Now, as in the case of motor vehicles, a detailed log of the official use has to be maintained, endorsed by the employee and his supervising authority. The old rule did not even mention credit cards possibly because it was a new phenomenon.

However, it was definitely covered by the general rule

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, November 03 2001. 00:00 IST
RECOMMENDED FOR YOU
.