self lease house provided by employer

This query is : Resolved

Rajat Sarin (Querist)
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26 February 2011 Mr. X gets self lease house from his employer for Rs. 20,000 per month and employer charges Rs. 5,000 per month from Mr. X

Mr. X will show house property income of Rs 2,40,000 (20,000 * 12) in his ROI.

Will he get deduction of Rs 60,000(5,000 *12)from his house property income?

Further employer will charge perquisite tax on self lease house as :-
15% of salary - rent recovered from employee.

I want to know 2 things:-
(a) Whether perquisite tax is correct?
(b) Will Mr. X get deduction of Rs. 60,000 from his house property income?

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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27 February 2011 Hi,

What do you mean by "Self Lease House from his employer" ???

Can you please explain the nature of Contract between the Employer & employee.

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons