taxabilty of rent free accommodation share by 3 employees

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Vikrant Bansal (Querist)
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08 July 2011 kindly clarify the status in case of shares accommodation provided by employer to 3 employees owned by employer for the purpose of rfa under income tax act

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 July 2011 It is an interesting case.
Each employee (X, Y and Z) has been given a rent free accommodation.

They may decide mutually and inform to the employer that the perquisite to be added in the hands of Z only. X and Y are dwelling there in the capacity of friends of Z.

Praveen Sharma

Praveen Sharma (Expert)
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09 July 2011 agree with expert view

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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10 July 2011 I disagree with the experts. If all are getting HRA then each of them can claim 1/3rd of rent paid and the balance shall be taxable as per the provision of section 10(13A).

If employer is paying the rent and not deducting anything then 10% is to be added as perquisite.

Praveen Sharma

Praveen Sharma (Expert)
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10 July 2011 The facts have to clear by the Vikrant Bansal, On that basis opinion will be given. There is not any question of agree or disagree.

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