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This section covers

 Gift of assets by employer to employee

or

Sale of Asset by employer to employee

 

In all these cases,

Depreciated Value of Asset

Less

Amt recovered from employee if any

is taxable perquisite

 

Depreciation is calculated as follows 

 Transfer of moveable assets by Employer to Employee - Taxability of Perquisites

 

Note

  • If any amount recovered from Employee , it is to be reduced
  • Completed year means period starting from date assets put to use by Employee.
  • (Example – if used for 1 year 11 months only 1 year shall be counted) .

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QUESTIONS

Q1

The company purchased 1/5/2012Laptop for Rs.40000

It was gifted to Employee on 1/8/2014

Calculate

  • No of Completed Years
  • Value of taxable Perquisite

--answer--

Period Used =2 Years 3 Months

No of Completed Year=2

 

Value of Asset

Cost price – 50% depreciation for each completed year is taxable using WDV method

 

PARTICULARS

Year 1

Year 2

Opening Value

40000

20000

Dep @ 50%

20000

10000

Cl Value

20000

10000

  

Value of Taxable Perquisite=

=WDV of ASSET

=10000

 

--endanswer--

 

Q2

Solve Q1 Assuming Laptop was sold to Employee for Rs.6000 and not gifted

---answer--

Value of taxable Perquisite=

10000 – 6000

= 4000

--endanswer--

 

Q3

The company purchased furniture on 1/1/2011 for Rs.100,000

It was sold to Employee on 1/9/2014 for Rs.50000

Find value of taxable Perquisite

Calculate

  • No of Completed Years
  • Value of taxable Perquisite

 

--answer--

Period Used =3 Years 8 Months

Completed Year=3

 

Value of Asset

Cost price – 10% depreciation for each completed year is taxable using SLM method

PARTICULARS

Year 1

Year 2

Year 3

Opening Value

100000

90000

80000

Dep @ 10%

10000

10000

10000

Cl Value

90000

80000

70000

  

Value of taxable Perquisite=

70000 – 50000

= 20000

--endanswer--

 

 

 

 

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
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