Free Club Membership for Employees - Taxability of Perquisites






Basic salary  = 40000 p.m.

Company owns club where Employees get free use

Cost of running the club per member is Rs.2000 P.M and fees charged from members is Rs.3000

However Employees can use if for free

Calculate income from salary


Value of club Perquisite Rs.2000x12 = 24000


Q2 Suppose club facility is not free Employee have to pay a nominal charge of Rs.500 per month




  Q3 Suppose Employee and his wife has joined a health club and they pay Rs.3000 each (6,000 for both)

As per company policy they claim reimbursement of the same of maximum Rs.5,000

What is the value of Perquisite.


Value of Perquisite = 5,000 p.m.(60000 annually i.e.the Cost to the Company)


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.