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Deduction of lease rent

Yamini (CA) (247 Points)

25 July 2017

A bank employee who is not recieving HRA but the bank is directly paying lease rent to the landlord. How can he claim deduction of such lease rent ?

whether deduction available or not?

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GST Consultant (Tax Consultant) (894 Points)
Replied 25 July 2017

the accommodation (lease rent directly paid by employer) provided by the company is treated as a ‘perquisite’ in the hands of employee and is considered to be a part of her taxable salary. The value of such accommodation is calculated as 15% of the salary or actual rent paid by the employer, whichever is lower.

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