194i in case of corp. providing accomodation to employees


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Querist : Anonymous

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Querist : Anonymous (Querist)
09 August 2014 A corporation is giving an accommodation to the employee (say M.D.), the house rental Rs.180000< is paid by company to the house owner as the rent agreement is between owner and the company (as tenant). Company is booking expenses as "Accommodation facility to employees" in P/L. Whether co. is liable to deduct TDS on that rent payment to house owner.?

Rupesh Jain (Expert)
09 August 2014 it is taxable under the salary head as perquisite in hand of MD .

if population in 2001 where accommodation is provided

more than 25 lacs then 15% of salary or lease rent paid by employer whichever is less will taxable in hand of MD.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 August 2014 Thankyou sir, please guide also if tds deduction liability is attracted.?

09 August 2014 Yes TDS is required to be deducted u/s 194J @ 10% if the threshold limit of Rs 1.80 lacs per annum is crossed.


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