New perquisite rule for furnished accommodation ?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
Follow

26 April 2010 Dear Sir,

We have provided to our employee, a leased furnished accommodation.

Now the Rule says,15 % of salary or lease rent paid, whichever is lower.. PLUS 10 % per annum of the cost of furniture provided.

I have two questions,

1. What is the meaning of salary for this purpose ?

2. House has been taken on rent (alongwith all the furnitures). No separate valuation for furniture is available. We only need to pay the monthly leased rent for all (House + furniture) @ 50000/- per month. What will be the perquisite valuation in this case ??

Kindly reply urgently.

Subhash Jha

shraddha

shraddha (Expert)
Follow

26 April 2010 For purpose of rent free accomaodation Salary includes Gross salary plus all taxable allowances and value of taxable perquisites excluding rent free accomodation

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

26 April 2010 Salary meaning for Rent free accomodation : Basic pay+ DA+Bonus+commission+ fees+ all taxable portion of allowances+ other monetory benefits which is taxable

If the funrniture also taken on hire basis the hire charges( not cost) for the furniture need to add to the valuation of accomodation

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now