Perquisties

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MURALIDOSS (Querist)
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27 April 2018 A state bank employee received 60000/- as taxable accomodation perquisites, he also paid RENT 60000/- Can claim this PERQUISITE AS DEDUCTION FROM Gross salary?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2018 There are various factors that come into play to calculate the perquisite value. Here is what needs to be done:

Calculate Your Total Salary for the year.
Salary here includes following:
Basic salary
Dearness Allowance (DA) (Forming part of Superannuation benefits). If nothing is mentioned, then add full DA.
All Allowances to the extent they are taxable including conveyance allowance.
Any Commission
Any Other Fees
Any Other payments like bonus or en-cash of leaves.
What should NOT be added to salary above:

Employer’s contribution to PF (provident fund).
Allowances which are exempted from tax.
The value of perquisites like any electricity bills or phone bills paid by employer.
Payments made for medical benefits/health insurance premium.
Find out if the house is owned by your company or is it leased/rented.
If the house is owned, the perquisite value of the house would be:
15% of salary (in cities that have a population exceeding 25 Lakhs as per the 2001 census)
OR 10% of salary (in cities that have a population between 10 Lakhs and 25 Lakhs as per the 2001 census)
OR 7.5% of salary (in all other places)Less (Subtract) The portion of the rent actually paid by you (Employee)
If your employer provides you accommodation that is in turn rented / leased by it, the perquisite value of the house would be:
The lower of: The actual amount of lease or rent paid by the employer OR 15% of salary Less (subtract) The portion of the rent actually paid by you.

MURALIDOSS

MURALIDOSS (Querist)
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27 April 2018 gross salary received 591000/- perquisites (accomodation-58000/- , car-23000/-sweeper-7300/-) =127800/-, that is 718800/-
here the above accommodation 58000/- is eligible for deduction or not? because he paid 5000/- per month rent paid i.e Rs.60000/- per year. sir... can ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2018 Rs 3985 is eligible for deduction.(15% of 718800 less actual rent paid 5000).

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