Govt eases norms on tax on perks for low-income, airlines, Railways

The government on Wednesday relaxed norms for taxing perks for salaried class having income up to Rs 100,000 and for employees of the Railways and airlines for this fiscal.

A notification issued by the finance ministry said that no tax deduction at source should be made under Section 192 of the Income Tax Act for this fiscal in respect of perks received in non-monetary form for salaried class having income up to Rs 100,000.

The government also exempted perks in the form of free or concessional tickets received by employees of airline companies and the Railways.

The relaxation is, however, applicable for this financial year only, an official release said.

The clarifications supersede the circular issued by the Central Board of Direct Taxes in December 12, 2001.

In another notification, government lowered the time limit for maintaining specified books of accounts to six years from the previous limit of 16 years.

The relaxation was carried out through an amendment to the Rule 6F of the Income Tax Act and Section 44A (3) of the same Act.

PTI

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