• Medical reimbursement under Income Tax Act: Employees can claim tax exemption for medical expenses incurred on themselves, their spouse, dependent children, and parents. The exemption limit is Rs.25,000 per annum for individuals and Rs.50,000 per annum for senior citizens.
• Transport allowance under Income Tax Act: Employees can claim tax exemption for transport allowance paid by their employer, subject to certain limits. The exemption limit is Rs.16,000 per annum for individuals and Rs.24,000 per annum for senior citizens.
• Leave travel allowance under Income Tax Act: Employees can claim tax exemption for leave travel allowance paid by their employer, subject to certain limits. The exemption limit is Rs.1,00,000 per annum for individuals and Rs.1,50,000 per annum for senior citizens.
• Contributions to provident fund under Income Tax Act: Employees can claim tax exemption for contributions made to provident fund schemes, such as EPF and PPF.
• Contributions to pension schemes under Income Tax Act: Employees can claim tax exemption for contributions made to pension schemes, such as NPS and Atal Pension Yojana.
• Interest on home loan under Income Tax Act: Individuals can claim tax exemption for interest paid on home loan, subject to certain limits. The exemption limit is Rs.2 lakh per annum for self-occupied property and Rs.3 lakh per annum for partly self-occupied and rented property.
• Interest on education loan under Income Tax Act: Individuals can claim tax exemption for interest paid on education loan, subject to certain limits. The exemption limit is Rs.1.5 lakh per annum for undergraduate studies and Rs.4.5 lakh per annum for postgraduate studies.
• Donations to charitable organizations under Income Tax Act: Individuals can claim tax exemption for donations made to charitable organizations, subject to certain limits. The exemption limit is 10% of the taxpayer’s gross total income.

In addition to the above, there are a number of other benefits and amenities that may be available under the Income Tax Act, depending on the taxpayer’s circumstances. For example, individuals with disabilities may be eligible for tax exemption for certain expenses incurred on their disability. Taxpayers who are employed in certain government or public sector organizations may also be eligible for additional benefits, such as tax exemption for housing allowance or travel allowance.

EXAMPLES

Sikkim:

• Exemption from income tax: Sikkim is the only state in India that has full exemption from income tax for its residents.

Kerala:

• Deduction for investment in tree plantations: Individuals and HUFs who invest in tree plantations in Kerala can claim a deduction of up to 50% of the cost of investment, subject to a maximum deduction of Rs.2 lakh.

Tamil Nadu:

• Deduction for investment in skill development: Individuals and HUFs who invest in skill development programs in Tamil Nadu can claim a deduction of up to 100% of the cost of investment, subject to a maximum deduction of Rs.50,000.

Other examples:

• Karnataka: Deduction for investment in renewable energy projects.
• Gujarat: Deduction for investment in research and development.
• Maharashtra: Deduction for investment in start-ups.

CASE LAWS

• CIT vs. Hindustan Steel Ltd. (1983) 141 ITR 1 (SC): The Supreme Court held that the value of rent-free accommodation provided to employees of a company is a taxable perquisite, even if the accommodation is provided on a temporary basis.
• CIT vs. Indian Oil Corporation Ltd. (1996) 221 ITR 287 (SC): The Supreme Court held that the value of free or concessional medical facilities provided to employees by their employer is a taxable perquisite.
• CIT vs. Wipro Ltd. (2005) 281 ITR 176 (SC): The Supreme Court held that the value of free or concessional canteen facilities provided to employees by their employer is a taxable perquisite.
• CIT vs. Tata Consultancy Services Ltd. (2010) 324 ITR 53 (SC): The Supreme Court held that the value of free or concessional transport facilities provided to employees by their employer is a taxable perquisite.
• CIT vs. Infosys Technologies Ltd. (2011) 332 ITR 27 (SC): The Supreme Court held that the value of free or concessional education facilities provided to children of employees by their employer is a taxable perquisite.

FAQ QUSTIONS

Q: Are all benefits and amenities taxable under the Income Tax Act?

A: No, not all benefits and amenities are taxable. Only those benefits and amenities that are specifically mentioned in the Income Tax Act are taxable.

Q: What are some examples of taxable benefits and amenities under the Income Tax Act?

A: Some examples of taxable benefits and amenities include under the Income Tax Act:

• Free or subsidized housing
• Free or subsidized food
• Free or subsidized transportation
• Club memberships
• Health insurance
• Leave travel allowance
• Education allowance
• Car allowance
• Telephone allowance
• Personal security allowance

Q: How are taxable benefits and amenities valued under Income Tax Act?

A: The value of taxable benefits and amenities is determined based on a number of factors, such as the market value of the benefit, the cost to the employer, and the employee’s salary.

Q: Are there any exemptions from taxation for certain benefits and amenities under the Income Tax Act?

A: Yes, there are a few exemptions from taxation for certain benefits and amenities. For example, the value of leave travel allowance is exempt from taxation up to a certain limit.

Q: What are the implications of receiving taxable benefits and amenities under the Income Tax Act?

A: If an employee receives taxable benefits and amenities, the value of those benefits and amenities will be included in their total income. This will increase their tax liability.

Here are some specific FAQs about certain other benefits, amenities, etc. under the Income Tax Act:

Q: Are meals provided by the employer taxable under the Income Tax Act?

A: Yes, meals provided by the employer are taxable if they are provided free of cost or at a subsidized rate.

Q: Are gym memberships provided by the employer taxable under the Income Tax Act?

A: Yes, gym memberships provided by the employer are taxable if they are provided free of cost or at a subsidized rate.

Q: Are car allowances taxable under the Income Tax Act?

A: Yes, car allowances are taxable if they are not used for business purposes.

Q: Are mobile phone allowances taxable under the Income Tax Act?

A: Yes, mobile phone allowances are taxable if they are not used for business purposes.

Q: Are personal security allowances taxable under the Income Tax Act?

A: Yes, personal security allowances are taxable if they are not necessary for the employee’s safety in the course of their employment.