This means that assets are owned by company but are being used by employee free of cost.

 

If a company provides moveable assets for free use to employee,then

Rent paid by company on it

or

10% Dep on asset

is taxable perquisite

 However if Laptops or Computers provided, then it is exempt

 

Note:-

Only moveable assets are covered in this provision

In case ,immoveable property (house) used by employee,it is covered in Rent free Accomodation

  Use of movable assets by Employee   - Taxability of Perquisites

 ---------------------------------------------------------------------------------------------------------------

 QUESTIONS

Q1    The company provide the following assets for free use at

         Employee's home for personal use

a.Laptop – Rs.40000 (purchased by the company)

View

 

 b.Computer taken on rent by the company = Rs.2,000 rent paid

View

 

c.Furniture – Rs.100,000 owned by the company

View

 

d.AC (air conditioner) taken on rent Rs.3,000 per month

---answer--

Taxable

Taxable Perquisite= Rent on AC = 3000*12 = 36000


 

 

Q2 Suppose in Q1 The company charges rent from Employees as follows

Laptop – 500 P.M

Computer – 600 p.m.

Furniture – 400 p.m.

AC  1000 p.m.

 

View

 

  1. Income Tax
  2. Income from Salaries
Ask Download

About the Author

Davneet Singh's photo - Teacher, Computer Engineer, Marketer
Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.