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Credit Card Given by Company to Employee - Taxability of Perquisites


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QUESTIONS

Q 1 .

Basic salary = 20,000 p.m.

Company has given a credit Card to the Employee through which he incurred his personal expenses

Company paid a bill of  Rs.40000  and annual membership of   Rs.1,000

Also on Add-on Card has been issued  which is used by Employee wife (No membership fees for Add-on Card but  amount spent by Employees wife Rs.30,000 which is reimbursed by the company)

Calculate income from salary .

--answer--

Ans. Basic salary  =  240,000

        Credit Card Perquisite = 40,000 + 1,000  + 30,000  =  71,000

        Income from salary     = 240000+71000=3,11,000

--endanswer--

 

 

Q.2

Suppose the company charges Rs.50000 from the Employee regarding  the credit Card

--answer--

Basic salary  =  240,000

Credit Card Perquisite = 71000  –  50000

                                                 = 21000

Income from salary = 261000 (240000 + 21000)

--endanswer--

  1. Income Tax
  2. Income from Salaries
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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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