.....Shri Bala employed in ABC Co. Ltd. as Finance Manager gives you the list of perquisites provided by the company to him for the entire financial year 2017-18: (i) Domestic servant was provided at the residence of Bala. Salary of domestic servant is ` 1,500 per month. The servant was engaged by him and the salary is reimbursed by the company (employer). In case the company has employed the domestic servant, what is the value of perquisite? (ii) Free education was provided to his two children Arthy and Ashok in a school maintained and owned by the company. The cost of such education for Arthy is computed at ` 900 per month and for Ashok at ` 1,200 per month. No amount was recovered by the company for such education facility from Bala. (iii) The employer has provided movable assets such as television, refrigerator and airconditioner at the residence of Bala. The actual cost of such assets provided to the employee is ` 1,10,000. (iv) A gift voucher worth ` 10,000 was given on the occasion of his marriage anniversary. It is given by the company to all employees above certain grade. (v) Telephone provided at the residence of Shri Bala and the bill aggregating to ` 25,000 paid by the employer. (vi) Housing loan @ 6% per annum. Amount outstanding on 1.4.2017 is ` 6,00,000. Shri Bala pays ` 12,000 per month towards principal, on 5th of each month. Compute the chargeable perquisite in the hands of Mr. Bala for the A.Y. 2018-19. The lending rate of State Bank of India as on 1.4.2017 for housing loan may be taken as 10%.
Dec. 08, 2017
