Tax of ₹25,000 paid on the non-monetary perquisite provided to the employees by Hotel Samode Palace.

Not allowable as Deduction: Income-tax of ₹25,000 paid by the employer in respect of non-monetary perquisites provided to its employees is exempt in the hands of the employees under section 10(10CC) of the Income Tax Act, 1961. Therefore, as per section 40(a)(v) of the Income Tax Act, 1961 such income-tax paid by the employer is not deductible while computing income from business or profession.