Rent free accomodation perquisit
This query is : Resolved
Naresh Solanki
(Querist)
24 December 2012
Hello Guys!
i am incurring INR 20,000 as rent per month and my company is reimbursing the said expenditure to me. my question does this would treet as rent free accomodation perquisit in hands of me.
Thanks!!
i am incurring INR 20,000 as rent per month and my company is reimbursing the said expenditure to me. my question does this would treet as rent free accomodation perquisit in hands of me.
Thanks!!
Naresh Solanki
(Querist)
26 December 2012
Hello Everyone!!
please reply it is urgent i am in dilema whter it is included in total income and can i get the HRA exemption.
please reply it is urgent i am in dilema whter it is included in total income and can i get the HRA exemption.
21 July 2025
Quick answer:
If your company is reimbursing the rent you actually pay, then this is not treated as rent-free accommodation perquisite.
Explanation:
Rent-free accommodation perquisite arises when the employer provides you a place to stay without you paying rent, or the employer pays rent directly to the landlord on your behalf without reimbursement from you.
In your case:
You incur INR 20,000 rent monthly.
Your company reimburses the same amount after you pay it.
This means you are actually paying rent, and the company is just reimbursing your expense.
This reimbursement is typically treated as salary income or allowance and not perquisite for rent-free accommodation.
However, if the company was directly paying the rent to the landlord without you incurring any rent expense, then it would be a rent-free accommodation perquisite.
Tax implication:
The rent reimbursement may be considered as a taxable allowance or part of your salary, depending on company policy.
But it is not the same as RFA perquisite since you are actually paying rent.
If your company is reimbursing the rent you actually pay, then this is not treated as rent-free accommodation perquisite.
Explanation:
Rent-free accommodation perquisite arises when the employer provides you a place to stay without you paying rent, or the employer pays rent directly to the landlord on your behalf without reimbursement from you.
In your case:
You incur INR 20,000 rent monthly.
Your company reimburses the same amount after you pay it.
This means you are actually paying rent, and the company is just reimbursing your expense.
This reimbursement is typically treated as salary income or allowance and not perquisite for rent-free accommodation.
However, if the company was directly paying the rent to the landlord without you incurring any rent expense, then it would be a rent-free accommodation perquisite.
Tax implication:
The rent reimbursement may be considered as a taxable allowance or part of your salary, depending on company policy.
But it is not the same as RFA perquisite since you are actually paying rent.
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