Perquisite is taxable or not
This query is : Resolved
Virendra Gupta
(Querist)
10 January 2018
Hi Guys and Practicing Member,
I am residing at Bangalore. now company transferring me to Pune for 3 months project and providing me the hotel accommodation.
I want to know whether hotel accommodations is treat as perquisite and taxable for me.
CA R SEETHARAMAN
(Expert)
10 January 2018
It will not be treated as perquisites and not taxable.
Virendra Gupta
(Querist)
10 January 2018
thank you so much sir for ur reply .can plz explain the reason
CA R SEETHARAMAN
(Expert)
10 January 2018
Under the Rule 2BB another allowance which is completely exempted from tax is the daily allowance, whether granted on tour or for the period of journey in connection with travel, to meet the ordinary daily charges incurred, by the employee on account of his absence from the normal place of duty. There is no monetary limit on the exemption of this allowance but any allowance which is reasonable for the employee’s work or the employment, and which is granted to meet expenses wholly, necessarily and exclusively incurred for the purposes of the, duties of an office or employment of profit, would be exempted, provided it is actually spent by the employee concerned.
For example, if an employee is allowed 1,200 per day as daily allowance for 5 days at Mumbai while he is away from his place of duty, i.e. New Delhi in connection with official work and he spends the entire amount and gives a certificate of amount actually spent by him, the entire amount of the daily allowance of 1,200 per day, namely 6,000 daily allowance for 5 days would be completely exempted from income tax under the aforesaid Rule under Section lO(14)(i).
For example, if an employee is allowed 1,200 per day as daily allowance for 5 days at Mumbai while he is away from his place of duty, i.e. New Delhi in connection with official work and he spends the entire amount and gives a certificate of amount actually spent by him, the entire amount of the daily allowance of 1,200 per day, namely 6,000 daily allowance for 5 days would be completely exempted from income tax under the aforesaid Rule under Section lO(14)(i).
CA R SEETHARAMAN
(Expert)
10 January 2018
Hotel expenses on outstation will fall under the above exemption.
Virendra Gupta
(Querist)
10 January 2018
sir but hotel accommodation is not fall under daily expenses na..
CA R SEETHARAMAN
(Expert)
10 January 2018
Hotel expenses will form part of daily expenses.
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