Perquisites

Configure and manage non-monetary benefits, their valuation and tax treatment in Payroll.

Available in🇮🇳 India

Perquisites management in Payroll handles all non-monetary benefits provided to employees, ensuring proper valuation and tax treatment as per Income Tax regulations. The system automates perquisite calculations, maintains compliance with tax laws and provides transparent reporting of taxable benefits.

Features

Feature	Description	Example
Automated Valuation	Automatic calculation of perquisite value as per Income Tax rules.	Company car perquisite valued based on engine capacity and usage type automatically.
Tax Compliance	Ensures proper tax treatment and reporting of perquisites in Form 16.	Rent-free accommodation valued as per government rules and included in taxable income.
Employee Contribution Tracking	Accounts for employee payments towards perquisites for net valuation.	If employee pays ₹5,000 for company car, only net perquisite value is taxed.
Multiple Perquisite Types	Support for various perquisite categories with specific valuation rules.	Handle accommodation, vehicles, loans, stock options and other benefits with appropriate valuation methods.

Accessing Perquisites

Navigate to People → Employee’s Name → Pay → Perquisites to access the perquisites management interface. The dashboard displays all active perquisites with their taxable values.

The perquisites screen presents:

• Active Perquisites List - All current non-monetary benefits.
• Perquisite Valuation - Calculated value as per tax rules.
• Employee Contribution - Amount paid by employee.
• Net Taxable Value - Final taxable perquisite amount.

Managing Perquisites

Adding Perquisites

To add a new perquisite:

1. Click Add Perquisites for Employees Name(here Employee’s Name).

2. Select the perquisite type from the dropdown:
   • Rent-free accommodation
   • Interest-free loan
   • Stock options
   • Car rental

3. Enter the total value amount.
4. Specify the amount paid by the employee (if applicable).

5. Click Add Perquisites to save.

Editing Perquisites

To modify existing perquisites:

1. Click Edit Perquisites for Employee’s Name.
2. Select the perquisite to modify.
3. Update the parameters:
   • Total value amount
   • Employee contribution
   • Perquisite period
4. Save the changes.

Deleting Perquisites

To remove perquisites:

1. Click Delete Perquisites.
2. Review the perquisite details in the confirmation dialogue.
3. Click Delete Perquisites to confirm.

Tax Implications

Perquisites are valued as per Income Tax rules and may be:

• Fully taxable
• Partially taxable
• Exempt under specific conditions

The system automatically calculates the taxable value based on:

• Market value of the benefit
• Employee contribution
• Applicable tax rules

Note

Perquisite valuation follows Income Tax Act provisions and is subject to change based on government notifications. The system automatically updates valuation rules as per latest tax regulations.