Tax
Perquisites
Perquisites are non-cash benefits an employee receives from the job, such as a company car, rent-free accommodation or stock options, valued and taxed as salary under prescribed rules.
Rule 3 of the Income Tax Rules gives valuation methods for each perk. The taxable value is added to salary for TDS and reported in Form 12BA with Form 16.
Some perks, such as meal vouchers within limits and employer NPS contributions up to a cap, are exempt.
In Indian payroll
ESOP perquisite tax at exercise is the one that surprises start-up employees. Payroll needs the exercise data from the cap-table system to deduct it correctly.
What is Perquisites?
Perquisites are non-cash benefits an employee receives from the job, such as a company car, rent-free accommodation or stock options, valued and taxed as salary under prescribed rules.
Why does Perquisites matter in Indian payroll?
ESOP perquisite tax at exercise is the one that surprises start-up employees. Payroll needs the exercise data from the cap-table system to deduct it correctly.
In Kuzhu
The Payroll module in Kuzhu is where Perquisites is handled, on the same employee record as everything else.
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