RFA Mystery

Save Share

This query is : Resolved

SWAPNIL MEERA SHARMA (Querist)

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.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

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

Message likes : 1 times

SWAPNIL MEERA SHARMA

SWAPNIL MEERA SHARMA (Querist)

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...???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

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

SWAPNIL MEERA SHARMA

SWAPNIL MEERA SHARMA (Querist)

24 August 2010 Thanks sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now