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Former Member
Jan 05, 2008 at 11:55 AM

Perquisite tax to be paid by employer


In our organisation the management has decided to bear the tax on housing perquisite on behalf of the employee.

In the current scenario we maintain IT00581 and the payroll based on the entries in It00581 calculates perquisite in operation INHRA and passes it as /3rb which is then added to /127.

Now we do not want /3rb to be passed to /127 to prevent taxation to the employee. at the same time the liability of the employee on a/c of housing perquisite has to be generated separately in order to convenient us generate the liability of the employeer on this a/c.

The amount paid by the employer on behalf of employee is also to be reflected in form 16.

please suggesty solution to para 2 and 3 above.