taxabilty of rent free accommodation share by 3 employees
This query is : Resolved
Vikrant Bansal
(Querist)
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
(Expert)
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.
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
(Expert)
09 July 2011
agree with expert view
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.
If employer is paying the rent and not deducting anything then 10% is to be added as perquisite.
Praveen Sharma
(Expert)
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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