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

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 1/5/2012 Laptop for Rs.40000

It was gifted to Employee on 1/8/2014

Calculate

• No of Completed Years
• Value of taxable Perquisite

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

Q2

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

Value of taxable Perquisite=

10000 – 6000

= 4000

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

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

1. Income Tax
2. Income from Salaries
Income from Salaries