Computation of income under the head ``Salaries''--Reimbursement of wages of sweeper, gardener and watchman--Applicability of Board's Instruction No. 133, dated 10-12-1969--Regarding - Income Tax - 662/1993

Computation of income under the head ``Salaries''--Reimbursement of wages of sweeper, gardener and watchman--Applicability of Board's Instruction No. 133, dated 10-12-1969--Regarding Circular No. 662 Dated 27/9/1993 To All Chief Commissioners of Income-tax and Director-General of Income-tax. Sir, Board's Instruction No. 133 (F.No. 40/25/69-ITA-I, dated 10th December, 1969) provides that the taxable perquisite in the hands of the employee on account of the services of gardeners, night watchmen and sweepers provided by the employer should be calculated on the following ad hoc basis : (i) Sweeper _ 75 per cent. of actual wages or Rs. 60 per month, whichever is less ; (ii) Gardener ; and (iii) Watchman _ 50 per cent. of actual wages or Rs. 60 per month, whichever is less. 2. The Board has received representation to clarify whether reimbursement by the employer of wages of sweeper engaged by the employee is covered by the above instruction. 3. Board's Instruction No. 133, dated 10th December, 1969, is applicable only when the services of sweeper are provided by the employer, i.e., the sweeper is recruited by the employer and remunerated by him but his services are placed at the disposal of the employee. Therefore, the reimbursement of wages of sweeper, gardener or watchman engaged by the employee is fully taxable as income from "salaries" in the hands of the employee. 4. This may be brought to the notice of all the Assessing Officers of your region. Yours faithfully, (Sd.) Pravin Varma, Under Secretary to the Government of India.