Perquisite value of rent free accomodation

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MAHESH C. SALGIA (Querist)
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12 July 2012 Comapny owned Residential House Property given as Rent free accomodation to the Director who is also sustaintial shareholder of the Company and drawing remuneration of Rs. 10000/- P. M..
What will be the perquisite valuation u/s 17 (2)of the I. T. Act, 1961.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 July 2012 Perquisites valuation as per Valuation rules.

Where the accommodation is provided by any non govt employer and- accommodation is owned by the employer,

Valuation:(i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census;

(ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census;

(iii) 7.5% of salary in other areas,
in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee.

MAHESH C. SALGIA

MAHESH C. SALGIA (Querist)
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12 July 2012 Even for the Director having substaintial stake in the Company.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 July 2012 Valuation same only. stake in company will not change the valuation

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