Computation of Annual Accretion on Employer’s Contribution to Welfare Funds

Up to the Assessment Year 2020-2021, there was no upper cap on theemployer’s contribution to the various employee’s welfare schemes. Separate provisions were available in the Income-tax Act to tax such contribution. Superannuation fund was taxable as perquisite under Section 17(2)(vii) in the hands of the employee only ifsuch contribution exceededRs. 1,50,000during the year.Up to the Assessment Year 2020-2021, there was no upper cap on theemployer’s contribution to the various employee’s welfare schemes. Separate provisions were available in the Income-tax Act to tax such contribution. Superannuation fund was taxable as perquisite under Section 17(2)(vii) in the hands of the employee only ifsuch contribution exceededRs. 1,50,000during the year.taxmann.com Latest ArticlesRead More

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