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
View 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
Q2
Solve Q1 Assuming Laptop was sold to Employee for Rs.6000 and not gifted
---answer--
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
View 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