Perquisites - Club Expenditure - Rule 3(7)(vi) - Income Tax - Ready Reckoner - Income Tax

Rule 3(7)(vi): VALUATION IN RESPECT OF CLUB EXPENDITURE The perquisite in respect of club facility shall be any expenditure incurred (including the amount of annual or periodical fee) in a club by employee or any member of his household or reimbursed by the employer on that account. The amount so determined shall be reduced by the amount, recovered from the employee for such benefit Expenses incurred includes: Any expenses on club facility, which is paid or reimbursed by the employer Amount of annual or periodical fees paid or payable to a club But does not includes: Expenses incurred on health club, sports facilities, etc. provided uniformly to all classes of employees by the employer at employer s premises. NOTES: where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the initial fee paid for acquiring such corporate membership. This sub-rule shall not apply in case if such expenditure is incurred wholly and exclusively for business purposes and complete details in respect of such expenditure are maintained by the employer i.e. date of expenditure, the nature of expenditure and its business expediency; 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;