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| Monetary value of perquisites, allowances and benefits |
Monetary value of perquisites, allowances and benefits under Section 33(ITA-2023)
As per section-33(ITA-2023),
Determination of monetary value of perquisites, allowances and benefits.—The monetary value of perquisites, allowances and benefits other than perquisites, allowances and benefits payable at monetary value shall be determined as per the table below, namely:—
Table
|
Seril No |
Perquisites, allowances, benefits, etc. |
Determined Price |
|
(1) |
(2) |
(3) |
|
1. |
Accommodation benefits |
a. The annual cost of accommodation, if the accommodation rent is fully paid by the employer or if the accommodation is provided by the employer; b. In respect of accommodation obtained at reduced rent, the difference between the rent determined under clause (a) and the rent paid. |
|
2. |
Benefits for each motor vehicle |
(a) 10,000 (ten thousand) Taka monthly for vehicles up to 2500 cc; (b) 25,000 (twenty-five thousand) Taka monthly in case of vehicles above 2500 cc. |
|
3.
|
Any other requisites, allowances or benefits |
Monetary value or fair market value of perquisites, allowances or benefits. |
Frequently asked Questions(FAQs):
1. What is the determination of monetary value of perquisites under Section 33?
Section 33 explains how to calculate the taxable value of perquisites, allowances, and benefits provided by an employer to an employee in Bangladesh.
2. Which benefits are considered perquisites under the Bangladesh Income Tax Act 2023?
Perquisites include housing, transport, utilities, medical benefits, and other non-cash advantages provided by employers.
3. How are allowances taxed under Section 33 in Bangladesh?
Allowances are taxed based on prescribed valuation rules, and some may be partially or fully exempt depending on government provisions.
4. Why is determining the monetary value of benefits important for tax calculation?
It ensures accurate reporting of taxable income and compliance with Bangladesh Income Tax laws, preventing penalties.
5. Are all employee benefits taxable under Section 33?
No, certain benefits are exempt or partially exempt as specified in the Income Tax Act and related rules.
6. How does Section 33 impact salary tax computation in Bangladesh?
It directly affects total taxable income by adding the calculated value of perquisites and benefits to an employee’s salary.