View: Few suggestions for finance minister on how to tax the new normal

View: Few suggestions for finance minister on how to tax the new normal

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These favourable amendments to the Income-Tax (I-T) Rules will not cost the exchequer much, and need not add to the cost of the company as the existing salary can be restructured to maintain the cost-to-company

Synopsis

Let’s begin with the stark reality of work from home (WFH). Currently, computers and laptops provided by employers for use by an employee do not give rise to any taxable perquisite. On the other hand, provision of any other asset, say, a swivel chair, would be taxed as a perquisite in the hands of the employee, at the rate of 10% of the original cost of the asset as reduced by any charges recovered from the employee.

Last year’s Economic Survey introduced ‘Thalinomics’ (bit.ly/2KbOcMi) to explain what a common person pays for a thali (of food) across India. We do know that a thali remains incomplete without some fine touches, such as a dash of pickle. This touch costs next to nothing, yet it goes a long way in making the food extra delicious. 2020 has been a year unlike any other. Will the forthcoming budget provide the needed dash of pickle?Let’s begin with

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