RFA Mystery
This query is : Resolved
17 August 2010
Sir/Madam,
I'm doing the chapter of Salary under Income Tax Act.
While reading the provisions of HOTEL ACCOMMODATION I came to know that if hotel is provided by employer while the transfer of employee to another city then tax will be paid by employee on it if provided for more than 15 days.
My question to experts::-
1. What if transfer is WITHIN THE CITY.....???[not from one city to another].
I mean, for example, mumbai is a big city where it is possible that transfer is being made to other office of employer which is in mumbai too.
2. What if hotel is provided to employee even if there's NO TRANSFER of employee...???
3. What if hotel is provided to the employee in other city without any transfer of the employee in that city...???
[As I read that perks are taxable even if provided to employee's relatives....so it is possible that the employer provided a hotel to employee's relative in other city which is eventually taxable as perk in employee's hands].
4. If hotel is provided for more than 15 days then how much will be taxable....Is it for period above 15 days only
or all days(including first 15 days)....???
May I have your views on it.
Please explain elaborately.
Thanks.
I'm doing the chapter of Salary under Income Tax Act.
While reading the provisions of HOTEL ACCOMMODATION I came to know that if hotel is provided by employer while the transfer of employee to another city then tax will be paid by employee on it if provided for more than 15 days.
My question to experts::-
1. What if transfer is WITHIN THE CITY.....???[not from one city to another].
I mean, for example, mumbai is a big city where it is possible that transfer is being made to other office of employer which is in mumbai too.
2. What if hotel is provided to employee even if there's NO TRANSFER of employee...???
3. What if hotel is provided to the employee in other city without any transfer of the employee in that city...???
[As I read that perks are taxable even if provided to employee's relatives....so it is possible that the employer provided a hotel to employee's relative in other city which is eventually taxable as perk in employee's hands].
4. If hotel is provided for more than 15 days then how much will be taxable....Is it for period above 15 days only
or all days(including first 15 days)....???
May I have your views on it.
Please explain elaborately.
Thanks.
22 August 2010
What ever provision you are asking applicable for both in the city or other places
With in 15 days valuation of perks nil
More than 15 days the valuation is excees of 15 days not includes the first 15 days
With in 15 days valuation of perks nil
More than 15 days the valuation is excees of 15 days not includes the first 15 days
Message likes :
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22 August 2010
But sir the provision of 15 days are applicable only when there's is transfer of employee.
My doubt rises when I think about a situation where the employer provides Hotel to his employee even without any transfer...So what is it...???
My doubt rises when I think about a situation where the employer provides Hotel to his employee even without any transfer...So what is it...???
23 August 2010
If the hotel accomadation provided without transfer the valuation of perks will be as per sec.17(2)
1. 24 % of salary paid or payable during the accomadation provided period
or
2.Actual Hotel charges
Which ever is lower is taxable perks
1. 24 % of salary paid or payable during the accomadation provided period
or
2.Actual Hotel charges
Which ever is lower is taxable perks
24 August 2010
Thanks sir.
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