Rent free unfurnished accomodation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 A flat has been allotted to an employee by the government, being the employer. Accordingly the employee has been ceased to draw house rent allowance. Now the question is that whether the employee is liable to pay income tax on the perquisite value of the accommodation.

Amol S Joglekar

Amol S Joglekar (Expert)
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19 November 2014 Yes. The vaslue of the perquisite shall be calculated and added to the income of that employee. (That is how it happens in the case of Govt employee who are allotted quarters. In effect, they tend to get less "take home")

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 November 2014 For Govt. employees the perquisite being very meager being the license fee. For other sector employees it is based on percentage of salary.

Central/ State Govt. employee

License fee on the basis of rule framed by Govt.for allotment of houses to officers.

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