How is perquisite tax calculated on leased accommodation?

Is leased accommodation taxable?

Company-leased accommodation is taxable as a perquisite in the hands of the employee, and its value is determined as per the income tax rules. … Whether the accommodation is a hotel/ serviced apartment/ owned by the employer or leased by the employer for you. Whether the accommodation is furnished or not. Your salary …

How is perquisite tax calculated?

Calculation of TDS/tax on perquisites:

Income chargeable under head ‘Salaries’: Rs 8,00,000. … Average rate of tax [ (75,400/800000) x 100 ] = 9.4% Tax payable on Rs 90,000 = (9.24% of 90,000) = Rs 8316.

How is tax calculated on rent free accommodation?

Unfurnished Accommodation:

  1. Income tax levied will be 15% of the income or salary earned by the employee minus the actual rent that the employee pays to his or her employer. …
  2. Income tax levied will be 10% of the income or salary earned by the employee minus the actual rent that the employee pays to his or her employer.
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What are perquisites how perquisites valuations done according to tax law?

Value of perquisite will be computed as follows: Value of perquisite will be calculated at the rate of Rs. 1,800 per month where the cubic capacity of the engine does not exceed 1.6 litres (i.e., 1600 cc) or Rs. 2,400 per month, if the cubic capacity of the engine exceeds 1.6 litres and Rs.

How is accommodation perk calculated?

Thus, perk value = Lower of (Rs. 60,000 or 15% of Rs. 1,69,000) less Rs.

This depends on various factors:

  1. Whether the house is owned by the company or rented / leased by it.
  2. Your salary.
  3. Lease amount / rent paid by the company, if applicable.
  4. Rent paid by you, if applicable.
  5. Whether the house is furnished or not.

What is self leased accommodation?

Self lease means the property owner is employee and employer takes this property on rent from employee then again given to employee for residing th eemployee for which employer pays.

What are the taxable perquisites?

Taxable Perquisites:

Some of the perquisites that are taxable in nature are rent-free accommodation, supply of gas, water and electricity, professional tax of employee, reimbursement of medical expense, and salary of servant employed by employee.

What is tax free perquisite?

Any recreational facility provided to a group of employees by the employer is not taxable. Thus, health club, sports and similar facilities provided uniformly to all employees by the employer is a tax-free perquisite.

What is meant by perquisite give five examples of tax free perquisites?

As is the case with allowances, the effect of perquisites on salary income largely depends on the type of perquisites that you receive. While there are tax-free perquisites such as rent free accommodation, supply or water or gas, taxable perquisites include education for children, domestic help’s service etc.

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What is rent free accommodation allowance?

House Rent Allowance is a kind of Allowance that an employee gets from his or her employer for fulfilling the rental expenses of their house. RFA is accommodation which covers house or property provided by the employer for the residential purpose of the employee.

What is the basis of valuation in case of govt employees for rent free house?

Basis of Valuation of Perquisites-

The value of perquisite in respect of accommodation provided to such employee is equal to the licence fee which would have been determined by the Central or State Government in accordance with the rules framed by the Government for allotment of houses to its officers.

What is perquisite under income from salaries?

“Perquisite” may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. “Perquisite” is defined in the section 17(2) of the Income tax Act as including: (i) Value of rent-free/concessional rent accommodation provided by the employer.

What are perquisites examples?

Perquisites are emoluments or benefits received from an employer, in addition to salary. For example, Rent-free accommodation. Free electricity, gas and water supply.