Ashwani is an employee of Bright Public School. His daughter, Asha is studying in the said school at concessional fees of ₹600 per month (Actual fee: ₹4,000 per month). The amount of perquisite taxable in the hands of As

Official answer key: (A), (B), (D). Official source note: Question does not specify whether Mr. Ashwani is a specified employee or not. Option A is correct if Mr. Ashwani is not a specified employee. Option B i.e. ₹ 40800 is correct if Mr. Ashwani is specified employee and ₹ 1000 per month limit of exemption is not deducted because as per rule 3 of the Income tax rules, concessional fees would be exempt upto ₹ 1000 per month only. Above the limit full value would be taxable i.e. Perquisites taxable with respect to concessional fees would be ₹ 4000 -600 i.e. amount actually recovered x 12 month = ₹ 40800. Option D i.e. ₹ 28800 is correct if Mr. Ashwani is specified employee and ₹ 1000 per month limit of exemption is deducted by applying the circular issued by CBDT in case of taxability of meal i.e. Perquisites taxable with respect to concessional fees would be (₹ 4000 -600-1000) x 12 month = ₹ 28800.