Contents

Preface to the 20^th Edition

Introduction: Salary & Perquisites

Academic Allowance

Accommodation at Concessional Rent Provided
by the Employer

Accommodation: Fair Rental Value

Accommodation (Furnished): Partly Used as
Office and Partly for Residence

Accommodation (Furnished): Provided by the
Employer

Accommodation in a Hotel

Accommodation: Partly Furnished

Accommodation (Unfurnished): For Residence

Accommodation (Unfurnished): Partly Used as
Office and Partly for Residence

Admission Fee of Club

Advance of Salary

Air Accident Insurance

Air Journey by Employees of Air Company

Allowance for Books

Allowance for Transport Workers

Ambassador's Staff Members, etc.: Remuneration

Amenity or Benefit from Employer.

Arbitration: Remuneration

Arrears of Salary

Assessment Year

Attendant Allowance

Attendant Provided by the Employer

Award from the Employer

Bonus

Books: Allowance

Books for Office Allowance

Border Area Allowance

Bus Transport Company Employees: Free
Journeys Provided by the Employer

Business (Credit) Card: Payment by the Employer

Business Gifts and Samples of Employer's
Products

Car Belonging to a Car Pool Used for Official
Purpose

Car Cleaner Provided by the Employer

Car for Official and Personal Use

Car for Official Use

Car for Personal Use

Car for Travelling to and from Office

Car Owned by the Employee but Maintained by
the Employer for the Employee's Official Use

Car Owned by the Employer but Expenses
Relating to its Personal Use by Employee Met by the Employee

Cash Allowance

Children Educational Allowance

Children's Hostel Allowance

Children's Scholarship

Children's School Fee

Children: Employment Facility

City Compensatory Allowance

Club Admission Fee

Club Bills: Payment by the Employer

Club Bills: Payment by the Employer for Official
Use by the Employee

Club Bills: Payment by the Employer for Personal
Use of the Employee

Colliery Allowances

Commission and Salary

Commission on Purchases

Commission on Sales

Commuted Pension

Compensatory Allowance

Composite Hill Compensatory Allowance

Concessional Accommodation

Contribution of Employee to Provident Fund

Contribution of Employer to Provident Fund

Conveyance Allowance

Cook Provided by the Employer

Concessional Fare

Cost of Living Allowance

Credit Card Expense Incurred Wholly and
Exclusively for Official Purposes

Crockery and Cutlery for Official Use at
Residence: Allowances

Crockery and Cutlery for Personal Use:
Allowances

Daily Allowances for Official Tours

Daily Allowances for Personal Trips

Dearness Allowances

Depreciation on Car

Depreciation on Furniture at Employee's
Residence

Dinner Provided by the Employer

Diplomatic Personnel: Remuneration

Domestic Servants

Education Allowance

Educational Allowance for Employee's Children

Educational Facilities (Free) for Employee's
Children

Educational Pursuits Allowance

Electricity (Free) provided by the Employer

Employee v. Consultant

Employees of Foreign Philanthropic Institutions:
Remuneration

Employees Stock Option Plan (ESOP)

Employment Facility for Employee's Children

Employment Tax

Entertainment Allowance (Fixed)

Entertainment Expenses: Reimbursement

Ex-Gratia Payment

Expenses for Maintaining Personal Office at
Residence

Expenses for Official Entertainment at Residence:
Reimbursement

Expenses for Personal Office

Expenses: Reimbursement

Fair Rental Value

Family Pension

Food & Beverages by Employer

Foreign Employees: Remuneration

Foreign Film Staff: Remuneration

Foreign Professors and Teachers: Remuneration

Foreign Research Scholar: Remuneration

Foreign Ship Crew: Remuneration

Foreign Technicians: Remuneration

Foreign Trainees: Remuneration

Free Educational Facilities

Fringe Benefits

Fringe Benefit Tax on Employee Stock Option
Plans upto financial year 2008-2009

Furnishing (Hard): Allowance and
Reimbursement

Furnishing (Soft): Allowance and Reimbursement

Furniture at Residence

Furniture for Office Maintained at Residence

Furniture (Free) for Office Use

Furniture Provided by the Employer at a
Concession

Garden or Lawn Attached to Rent-Free
Residential Accommodation Provided by the Employer

Gardener Provided by the Employer

Gas (Free) Provided by the Employer

Gift Voucher

Gifts in Kind for Achieving Sales or Production
Targets

Golden Handshake Receipts

Government Pensioners

Gratuities

Gross Salary Income

Guest House Used by the Employee for Official
Duties

Guest House Used by the Employee for Personal
Purposes

Health Club Payment

Health Insurance

Helmet Allowance

Helper Allowance

Helper from Employer

Hill Allowance

Holiday Home Used by the Employee for Personal
Purposes

Holiday Trip for the Employee and His Family

Hostel Allowance

Hotel Employees: Free Board and Lodging

Hotel Expenses for Official Tour

Hotel Expenses for Personal Trips

House at Concessional Rent

House Rent Allowance

House Rent Deduction

Incentive Bonus

Incentive for Achieving Sales Target

Income Tax on Perquisites

Income Tax on Salary

Income Tax Return: Filing

Individuals Concerned with Co-operative
Assistance Programme: Remuneration

Insurance: Air Accident

Insurance (Health): Premium

Insurance Premium for Medicare Policies

Insurance Premium: Household Theft Insurance

Insurance Premium on LIC's Jeevan Dhara and
Jeevan Akshay Policies Paid by the Employer

Interest-free Loan for Medical Treatment

Interest-free Petty Loans from Employer

Key Man Insurance Policy Premium

Leave Encashment

Leave Travel Allowance

Leave Travel Allowance (Yearly)

Life Insurance Premium of an Employee Paid by
the Employer

Life Protection Iron Body (For Mine Workers)

Loan (Interest-Free) by the Employer

Loans and Advances from the Employer

Loans of Employee Paid by the Employer

Lunch (Free)

Lunch/Dinner (Concessional)

Marriage Gifts and Presents from the Employer

Medical Claim and its Payment

Medical Claim: Receipts

Medical Expenses Allowance

Medical Expenses: Reimbursement for Expenses
in Government Hospital

Medical Reimbursement up to Rs. 15,000

Medical Treatment Abroad

Medical Treatment Abroad: Allowance

Medical Treatment Abroad of an Employee's
Family Member

Medical Treatment Abroad: Reimbursement

Medical Treatment Abroad: Travel & Stay
Abroad of Accompanying Attendant

Medical Treatment at a Hospital Maintained by
the Employer

Medical Treatment at a Nursing Home

Medical Treatment at a Private Hospital

Medical Treatment at an Approved Hospital

Medical Treatment at Hospital: Allowance

Medical Treatment at Hospital: Reimbursement

Medical Treatment at Unrecognized Hospitals

Medical Treatment in India of an Employee's
Family Member

Medical Treatment of Prescribed Diseases or
Ailments at an Approved Hospital

Monthly Pension and Tax Deduction

More than one Motor Car Owned or Hired by the
Employer for an Employee

Newspaper Allowance / Reimbursement

Non-Resident Employees on Foreign Ship:
Remuneration

Passage Money

Pension and Standard Deduction

Perquisite in the Form of any Other Automotive
Conveyance

Perquisite Valuation

Perquisite Valuation for Vehicle Sold to an
Employee at Nominal Value

Perquisites: Unauthorized Use

Perquisite where the Educational Institution is
itself Maintained and Owned by the Employer

Perquisites of Members of UPSC

Personal Attendant

Personal Gift from the Employer

Personal Testimonial Gifts

Pocket Money

Previous Year

Prize for Sales Targets

Professional Pursuits: Allowance for
Encouragement

Professional Tax

Profits in Lieu of Salary

Provident Fund: Employee's Contribution

Provident Fund: Employer's Contribution

Provident Fund: Interest

Provident Fund (Statutory) Contribution

Provident Fund (Unrecognized) Contribution

Railway Journeys for Railway Employees

Reimbursement of Expenses

Remote Area Allowance

Rent Paid by Employer for Furniture, etc. at
Employee's Residence

Rent-Free Residential Accommodation

Repairs of Car Used for Official Purposes

Repairs of Car Used for Personal Purpose

Research Pursuits: Allowance

Residential Accommodation in a Hotel

Residential Accommodation in a Remote Area

Retiring Government Employees Deposit Scheme,
1989

Retiring Government Servants

Retiring Public Sector Employees

Retrenchment Compensation

Salary: Advance

Salary: Arrears

Salary: Concept, Definition and Computation

Salary Income: Gross

Salary: Profits in Lieu of

Scholarship to an Employee's Children

School or Hostel Fee of the Employee's Children
Paid by the Employer

Scooter Allowance

Scooter (Free) for Office Use

Scooter (Free) for Personal Use

Seaman's Jacket

Senior Citizens as Employees

Servant Provided by the Employer

Shares issued to Employees at less than Market
Price

Ship Journey to Shipping Company Employees

Single Premium Annuity Policy

Special Allowances

Special Compensatory Allowances

Sports Facilities

Stock Option

Superannuation Fund: Payment

Sweeper Provided by the Employer

Tax-Free Perquisites for Directors Receiving
Salary below Rs. 50,000 p.a.

Tax-Free Perquisites for Employees Receiving
Salary below Rs. 50,000 p.a.

Tea and Snacks in Office Provided by the
Employer

Telephone at Employee's Residence

Telephone in Office

Tour Allowances

Trade Commissioner: Remuneration

Transfer Expenses Provided by the Employer

Transfer of Computer and Electronic Item

Transfer of Motor Car

Transfer of Movable Asset

Transport Allowance

Transport Company Employees: Concessional
Journeys

Transport Workers Allowance

Travelling Allowance on Tours or Transfers

Travelling on Holidays

Tribal Area Allowance

Two Residential Accommodations Provided to an
Employee

U.N. Officials: Remuneration

Unauthorized Use of Perquisites

Unfurnished Accommodation Provided by the
Employer

Uniform Allowance and Reimbursement

Unspent Surplus of Allowances &
Reimbursements

Use of Movable Assets

Valuation of Perquisites

Vehicle Sold to an Employee at Nominal Value:
Valuation of Perquisites

Voluntary Payments by the Employer

Voluntary Separation

VRS

Washing Allowance

Watchman Provided by the Employer

Water (Free) Provided by the Employer

Appendix A: Certain Compensatory Allowances
Exempt from Tax