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
Rent paid for hotel accommodation beyond 15 days will be valued as taxable perquisite by applying the rules of rent free accommodation. It means:
1. Rule will apply even if transfer is within city. 2. Rule does not apply if there is no transfer of employee. 3. Rule will apply even if accommodation is provided in different city assuming there is transfer. 4. Apply rules of RFA to rent paid for period beyond 15 days.
btw: You are using FCA before your name, while you are representing in your profile as student. Is it correct?
22 August 2010
Moreover, I agree that I use FCA before my name.
Ummm...sir actually I'm a psychology player. Becoming a C.A is my dream...so everytime I switch on my computer such words keep on telling me that Aim is yet to be achieved so work hard cuz time keeps flying.
Even my ID is CAswapnilsharma. Last but not least....for me FCA is FUTURE CHARTERED ACCOUNTANT.
23 August 2010
If there is no transfer of employee and employee is provided with hotel accommodation for business use, then rule does not apply. In case the same is provided for personal use, then it will be valued as RFA from the day 1. That means no free 15 days.
Kindly do not use words FCA before your name. This exposes you to risk of misrepresentation. Saying FCA means future chartered accountant does not protect you from from the said risk.
CAclubindia
