Tax exemption for rent in company's name
This query is : Resolved
10 October 2013
Company has rented a house for accomodation of Directors. Company has paid rent advance of Rs.1 lakh and monthly rent of Rs.10,000.
Since the payment has been made in company's name, can the company avail tax exemption in respect of 1 lakh rupees and 10,000rs?
pls clarify
Since the payment has been made in company's name, can the company avail tax exemption in respect of 1 lakh rupees and 10,000rs?
pls clarify
Nikhil Kaushik
(Expert)
10 October 2013
Rs 1 lakh shall reflect as security deposit on the asset side (whether current or non-current shall depend on the duration of the deposit)
Rs 10000 should be claimed as expense.
While calculating salary of the directors, taxable perquisite may be computed. Alternatively, this house may be shown as company guest house.
Rs 10000 should be claimed as expense.
While calculating salary of the directors, taxable perquisite may be computed. Alternatively, this house may be shown as company guest house.
11 October 2013
The reply given by Mr. Nikhil is correct. Rs. 1 lakh will be allowed as an expense as and when the same is adjusted against the rent.
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