.....Mr. X and Mr. Y are working for M/s. Gama Ltd. As per salary fixation norms, the following perquisites were offered: (i) For Mr. X, who engaged a domestic servant for ` 500 per month, his employer reimbursed the entire salary paid to the domestic servant i.e. ` 500 per month. (ii) For Mr. Y, he was provided with a domestic servant @ ` 500 per month as part of remuneration package. You are required to comment on the taxability of the above in the hands of Mr. X and Mr. Y, who are not specified employees.
Dec. 08, 2017