Perquisites

Perquisite indicates some extra benefits in addition to amount legally due by way of contract of service. It is extra paid benefits provided with monetary salary.

Perquisite may be housing facilities, car facility, Any club facilities, etc

Perquisite can be in cash or in kind.

If expenses are paid by employees for any official discharge of duty and reimbursed by the employers are not a perquisite.

In the course of a career or while working, a perquisite may develop. 

If it results from an employer-employee connection, the amount of the perk is taxable as salary. 

However, if it arises during the course of

profession, the value of such perquisite is chargeable as profits and gains of

business or profession

Perquisite will become taxable only if it has a legal origin. An unauthorised

advantage taken by an employee without his employer’s sanction cannot be

considered as a perquisite 

Example: Leave travel concession, car perquisite, rent free house, medical facilities, telephone facilities,etc