Imputed income

Imputed Income – Imputed income is the estimated monetary value of non-cash benefits or perks received by an individual or entity. These benefits are not received as direct cash but provide economic value and are often considered for taxation purposes. Examples of Imputed Income: Use of a company car for personal purposes. Employer-provided housing or accommodation. Free or subsidized meals, medical benefits, or stock options. Purpose: Ensures fair taxation by accounting for economic benefits received beyond regular cash wages. Reflects the true economic income of an individual or entity. Example: An employee is provided a company-owned apartment valued at ₹50,000 per month for personal use. This ₹50,000 is treated as imputed income and included in the employee’s taxable income for the year.