Income Tax Act, 2025
Section 6: Ins. by Act 21 of 2006, s. 28 (w.e.f. 12007).
6. Ins. by Act 21 of 2006, s. 28 (w.e.f. 12007).
526
(3) For the purposes of sub-section (1), the privilege, service, facility or amenity does not include
perquisites in respect of which tax is paid or payable by the employee 1[or any benefit or amenity in the
nature of free or subsidised transport or any such allowance provided by the employer to his employees
for journeys by the employees from their residence to the place of work or such place of work to the place
of residence.]
115WC. Value of fringe benefits.—(1) For the purposes of this Chapter, the value of fringe benefits
shall be the aggregate of the following, namely:—
(a) cost at which the benefits referred to in clause (b) of sub-section (1) of section 115WB, is
provided by the employer to the general public as reduced by the amount, if any, paid by, or
recovered from, his employee or employees:
Provided that in a case where the expenses of the nature referred to in clause (b) of
sub-section (1) of section 115WB are included in any other clause of sub-section (2) of the said
section, the total expenses included under such other clause shall be reduced by the amount of
expenditure referred to in the said clause (b) for computing the value of fringe benefits;
2[(b) the amount of contribution, referred to in clause (c) of sub-section (1) of section 115WB,
which exceeds one lakh rupees in respect of each employee;]
3[(ba) the fair market value of the specified security or sweat equity shares referred to in clause
(d) of sub-section (1) of section 115WB, on the date on which the option vests with the employee as
reduced by the amount actually paid by, or recovered from, the employee in respect of such security
or shares.
Explanation.—For the purposes of this clause,—
(i) “fair market value” means the value determined in accordance with the method as may be
prescribed by the Board;
(ii) “option” means a right but not an obligation granted to an employee to apply for the
specified security or sweat equity shares at a predetermined price;]
(c) twenty per cent of the expenses referred to in 4[clauses (A) to (L)] of sub-section (2)
of section 115WB;
(d) fifty per cent of the expenses referred to in 5[clauses (M) to (P)] of sub-section (2) of
section 115WB;
6[(e) five per cent. of the expenses referred to in clause (Q) of sub-section (2) of section 115WB.]
(2) Notwithstanding anything contained in sub-section (1),—
(a) in the case of an employer engaged in the business of hotel, the value of fringe benefits for
the purposes referred to in clause (B) of sub-section (2) of section 115WB shall be “five per cent.”
instead of “twenty per cent.” referred to in clause (c) of sub-section (1);
6[(aa) in the case of an employer engaged in the business of carriage of passengers or goods by
aircraft, the value of fringe benefits for the purposes referred to in clause (B) of sub-section (2)
of section 115WB shall be “five per cent” instead of “twenty per cent” referred to in clause (c) of
sub-section (1);
For the purposes of sub-section
For the purposes of this Chapter, the value of fringe benefits
shall be the aggregate of the following, namely:—
cost at which the benefits referred to in clause
of sub-section
of section 115WB, is
provided by the employer to the general public as reduced by the amount, if any, paid by, or
recovered from, his employee or employees:
Provided that in a case where the expenses of the nature referred to in clause
of
sub-section
of section 115WB are included in any other clause of sub-section
of the said
section, the total expenses included under such other clause shall be reduced by the amount of
expenditure referred to in the said clause
for computing the value of fringe benefits;
2[
the amount of contribution, referred to in clause
of sub-section
of section 115WB,
which exceeds one lakh rupees in respect of each employee;]
3[
the fair market value of the specified security or sweat equity shares referred to in clause
of sub-section
of section 115WB, on the date on which the option vests with the employee as
reduced by the amount actually paid by, or recovered from, the employee in respect of such security
or shares.
Explanation.—For the purposes of this clause,—
“fair market value” means the value determined in accordance with the method as may be
prescribed by the Board;
“option” means a right but not an obligation granted to an employee to apply for the
specified security or sweat equity shares at a predetermined price;]
twenty per cent of the expenses referred to in 4[clauses
to
of section 115WB;
fifty per cent of the expenses referred to in 5[clauses
to
of
section 115WB;
6[
five per cent. of the expenses referred to in clause
of sub-section
of section 115WB.]
Notwithstanding anything contained in sub-section
in the case of an employer engaged in the business of hotel, the value of fringe benefits for
the purposes referred to in clause
of sub-section
of section 115WB shall be “five per cent.”
instead of “twenty per cent.” referred to in clause
of sub-section
in the case of an employer engaged in the business of carriage of passengers or goods by
aircraft, the value of fringe benefits for the purposes referred to in clause
of sub-section
of section 115WB shall be “five per cent” instead of “twenty per cent” referred to in clause
of
sub-section