Contents

Preface to the 23rd 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
Book Grant Reimbursement
Border Area Allowance
Brief Case Reimbursement
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 fully Met by the Employee
Cash Allowance
Children Education 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
Foreign Travel
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 Cleaning Reimbursement
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
Pension Funds
Pension Scheme of Central Government
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: Employee's Contribution
Provident Fund: Interest
Provident Fund (Statutory) Contribution
Provident Fund (Unrecognized) Contribution
Railway Journeys for Railway Employees
Rationalisation of Tax Treatment of Recognised Provident
Funds, Pension Funds and National Pension Scheme
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
Staff Furnishing Scheme
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 Grant Allowance
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