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Calculation of taxable HRA

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This query is : Resolved

KC Shekhar (Querist)

13 February 2010 I am leving in company accomodation(Unfurnished)in mundra, kutchh, gujarat. Company paying HRA@ 40% of basic is 6900 and recovering @4500/-P.M.(which is neither the rent free accomodation provided by emploer nor the concesstional rate) While calculationg the taxable income also charging Perquisite value on @7.5% on my salary(Basic+Site Allowance + Responsibility allowance + Bonus )which is Rs. 1906/- . Value of perquisite is less than amount recovered from employee.

Is this covered under the definition of perquisite value in regards of HRA?
if not,then would deduction made u/s 10(13a)?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

13 February 2010 My view , since you are living in Company accomodation and paying rent it is treated as Perquisites only. so value of perquisites less recovered from the employee is taxable.so in your case Recovering amount is higher than the perks value so value is Nil

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