Perquisite Set up - A summary of the activity

Through this activity, you can maintain details of the perquisites provided by the company. Examples are accommodation, vehicle, gardener, chauffeur, etc.

Perquisites are defined as the non- monetary benefits provided by the company to its employees in addition to the regular salary.

According to the Income Tax Act, all monetary and non-monetary payments received by the employee must be included in the salary income for tax computations. Since perquisites are non-monetary benefits, it becomes necessary to assess the value and include the same in the salary. The method of evaluating a perquisite is specified in the Finance Act. You can specify these methods and evaluate the value of the perquisite in this activity.

Ramco HRMS broadly classifies perquisites into three categories.

• Accommodation

• Motor Car

• Others

Ramco HRMS also provides various types of perquisites that can be offered by the company to its employees. Besides these, you can also define a new perquisite. Defining a perquisite involves specifying

• An unique code and description to identify a perquisite type.

As you specify these parameters, the system computes the perquisite value and adds to the gross taxable income of the employee.

Note that the “Gross Taxable Income” is defined as the income earned by the employee on which tax is computed.

Apart from defining a perquisite, you can also modify the details of an existing one.

Getting familiar with the pages inside

Go to page…	…to carry out task
Perquisite Setup	Setting perquisites
Create Accommodation Types	Creating accommodation types
Edit Accommodation Types	Editing Accommodation types
Create Vehicle Types	Creating vehicle types
Editing Vehicle Types	Editing vehicle types
Create Other Perquisites	Create other perquisites
Editing Other Perquisites	Editing other perquisites
Help on Pay Element	Getting help on pay element

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6      Hyperlinked topics below

Prerequisites

None

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What you can do in this activity

Create accommodation types

Edit  accommodation types

Create vehicle types

Edit vehicle types

Create other perquisites

Edit other perquisites

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Create accommodation types

You can create various accommodation types provided to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to create an accommodation type.

• Use the “Rent Free Accommodation Setup” page to record the details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Edit accommodation types

You can edit various accommodation types provided to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to edit an accommodation type.

• Use the “Edit Rent Free Accommodation Setup” page to modify the details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Create vehicle type

You can create various vehicle types and extend the same to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to create a vehicle  type.

• Use the “Create Vehicle Types” page to record the details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Edit vehicle types

You can edit various vehicle types provided to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to edit a vehicle type.

• Use the “Edit Vehicle Type” page to modify the details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Create other perquisites

You can create various perquisites other than the house and vehicle perquisites provided to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to create a perquisite type

• Use the “Create Other Perquisites” page to record the details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Edit other perquisites

You can edit various accommodation types provided to the employees.

• Use the “Perquisite Setup” page to select the tax year for which you can want to edit an accommodation type.

• Use the “Edit Other Perquisites"  page to modify the details.