Which of the following is an advantage of perquisites?
A) Perks offer substantial tax savings because some of them are not taxed as income.
B) Perks offer substantial tax savings because some of them are not taxed as an expenditure.
C) Perks ensure a source of regular additional income for the employees apart from the salary.
D) Perks help in reducing the total cost of benefits provided by the organization.

Question

Quizplus · Accepted Answer

Perks offer substantial tax savings because some of them are not taxed as income. This makes perks an attractive option for both employers and employees as they can provide additional benefits without increasing the tax burden on either party. Additionally, employees may be more motivated and productive when they receive perks, which can lead to increased profitability for the organization.

Which of the Following Is an Advantage of Perquisites