Fringe benefits: Taxable vs non-taxable benefits

Your employer might be offering you some fringe benefit or non-wage compensations along with your CTC. These fringe incentives provide tax-relief to both employer and an employee. However, there are limits to this, and some fringe benefits may or may not provide a tax deduction. In some cases, there might be a set limit on the amount that may be claimed as tax deductions.
Technically, all fringe benefits provided by an employer is considered taxable unless an exception is made. Fortunately, there are many forms of benefits that are at least partially deductible. Some of the common fringe benefits provided by an employer include - Health Insurance. If an employer pays a premium of policies on behalf of employees, the amount paid as the premium is not taxed and may be deducted by the business. Some of the other tax-free fringe benefits offered by an employer include - dependent care assistance, educational assistance and conveyance services.
However, it should be noted that these deductions have a limit. And not all benefits are non-taxable. Hence, you should know what are taxable and non-taxable fringe benefits:
Taxable Fringe Benefits
These benefits are included in gross income, for example:

Nontaxable Fringe Benefits
Some of the non-taxable fringe benefits that are excluded from gross income include:

To know more about fringe benefits and taxable vs non-taxable benefits contact your HR manager.