Perquisites - Credit Cards - Rule 3(7)(v) - Income Tax - Ready Reckoner - Income Tax

Rule 3(7)(v): VALUATION IN RESPECT OF CREDIT CARD The perquisite in respect of credit card is taxable as follows: Expenses incurred* by employer in respect of credit card used by employee / his household member Less: Expenditure on use for official purposes Less: Amount, if any, recovered from the employee *Expenses incurred means the amount of expenses + membership fees + annual fees for credit card, provided or otherwise paid or reimbursed by the employer. NOTES: There shall be no value of such benefit where the expenses are incurred wholly and exclusively for official purposes provided complete details in respect of such expenditure are maintained by the employer i.e. the date of expenditure and the nature of expenditure; and the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.