The increase of income tax burden from perks provided by the employer:-

There are many perks provided by the employers to employees in addition to the salary.

The perks offer by the employers are:-

• Club Memberships
• Employee stock options
• Housing allowance
• Vehicle
• Personal attendants
• Company lease house

Some of the perks provided by the employers are taxable and some are exempt as per income tax rules.Perks can be reimbursements of expenses such as for telephone, medicines and treatment, fuels, books, and journals.These perks are fully exempt from tax.

Reimbursements for medical expenses can be up to Rs.15000 while there is no maximum amount of cap for the telephone as it totally depends on the company.

Many firms provide interest-free loans and loans on the concessional rate which is totally taxable.

 Car allowance:-

There is an amount of cap in case of transport allowance for commuting between home and office which is an exemption from tax for up to Rs.1600 per month.

Concessional education:-

If the free or concessional education provided for any family member of the employee then the amount of expenditure is totally incurred by the employer.

Company lease house:-

If the company provides a house on lease to the employee the value of the perk will be 15% of the salary or the actual amount of lease rental paid by the employer,  whichever is lower.

 Use of assets:-

If the employee is using the movable assets which are owned by the employer then the perquisite will be charged at 10% of total cost of the asset.Laptops and computers do not come under this category.