Often, Employers provide employees with free or cheap services, which include, for example, Employee Wellness Programs.
These benefits fall under the Seventh Schedule of the Income Tax Act, which deals with how various types of benefits provided by employers are to be taxed in the hands of the employee.
Specifically, the benefits covered include:
- Services provided to employees either free or at a reduced rate (e.g., travel, communication, or workplace facilities).
- Special rules for employer-provided residential accommodation linked to future purchase rights.