{"id":5350,"date":"2012-08-10T10:33:36","date_gmt":"2012-08-10T10:33:36","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=5350"},"modified":"2012-08-10T10:34:21","modified_gmt":"2012-08-10T10:34:21","slug":"dit-vs-sedco-forex-international-drilling-inc-uttarakhand-high-court-tax-on-employees-salary-is-a-non-monetary-perquisite-exempt-us-1010cc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/dit-vs-sedco-forex-international-drilling-inc-uttarakhand-high-court-tax-on-employees-salary-is-a-non-monetary-perquisite-exempt-us-1010cc\/","title":{"rendered":"DIT vs. Sedco Forex International Drilling Inc (Uttarakhand High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=796\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=796&varname2=sedco_forex_non_monetary_perk.pdf'; }, 100)\" ><strong>Click here to download the judgement (sedco_forex_non_monetary_perk.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nTax on employees&#8217; salary is a &#8220;non-monetary&#8221; perquisite exempt u\/s 10(10CC)<br \/>\n<\/strong><\/p>\n<p>The assessee-employer entered into agreements with the employees pursuant to which it agreed to <em>bear the income tax payable by the employees on their salary<\/em>. The question was whether such tax payment was &#8220;<em>income in the nature of a perquisite, not provided for by way of monetary payment, within the meaning of clause (2) of section 17<\/em>&#8221; so as to be exempt in the hands of the employee. HELD by the High Court:<\/p>\n<blockquote><p>The tax on the salary paid by the employer was a &#8220;<em>perquisite<\/em>&#8221; u\/s 17(2)(iv) because it was paid in respect of the employees&#8217; obligation and it was <strong>not by way of monetary payment to the employees concerned<\/strong> but for or on their account to the Income-tax department. Consequently, it is a &#8220;<strong>non-monetary<\/strong>&#8221; payment of a perquisite to the employee which is eligible for exemption u\/s 10(10CC).\n<\/p><\/blockquote>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The tax on the salary paid by the employer was a &#8220;<em>perquisite<\/em>&#8221; u\/s 17(2)(iv) because it was paid in respect of the employees&#8217; obligation and it was <strong>not by way of monetary payment to the employees concerned<\/strong> but for or on their account to the Income-tax department. Consequently, it is a &#8220;<strong>non-monetary<\/strong>&#8221; payment of a perquisite to the employee which is eligible for exemption u\/s 10(10CC)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/dit-vs-sedco-forex-international-drilling-inc-uttarakhand-high-court-tax-on-employees-salary-is-a-non-monetary-perquisite-exempt-us-1010cc\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-5350","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/5350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=5350"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/5350\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=5350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=5350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=5350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}