Which of the following is a tax-free perquisite?

The correct answer is Training by employer.Key Points

• Any expenditure incurred by the employer, for providing training to the employees or by way of payment of fees or refresher courses attended by the employees shall be tax-free.
• The amount given by the employer to employees’ children as a scholarship is a tax-free perquisite.
• Tax paid by the employer on non-monetary perquisites of the employee shall be exempt in the hands of the employee.

Additional Information 

• What are Perquisites?
  • In addition to the cash component of salary, the employees are also given non-cash benefits by the employer. These non-cash benefits are generally known as ‘Perquisites’.
  • Perquisites provided by the employer to an employee are subject to tax under the head “Income under head Salary”. 
  • But not all the perquisites are taxable, some perquisites are specifically exempted from income tax.