CONCESSION OF RS 1000 PER CHILD

Terms to avail of benefit in case of education

THE Delhi Income-Tax Tribunal has held that no concession would be available to an employee where the perquisite value of free/concessional education exceeds Rs 1,000 per month per child (pmpc). In the relevant case, the assessee, while calculating amount of perquisite value of free/ concessional education facilities deducted Rs 1,000 pmpc in terms of Rule 3(5). The assessing officer (AO) disallowed the claim of the assessee. The tribunal held that Rule 3(5) is an exception to the main rule. While in respect of perquisites of free meals and gifts, universal exemption is granted up to Rs 50 and Rs 5,000, respectively, no such universal concession of Rs 1,000 has been permitted. The benefit has been given only to persons whose cost or perquisite value of free educational facility did not exceed Rs 1,000 pmpc.