Accommodation perquisites in case of rent free accommodation

Sir,

Assessee working in PSU, Empoloyer(PSU) paid HRA to Assessee (Employee) for Apr-18 to June-18 and July-2918 onwards Employer alloted an accommodation to employee. w.e.f. July onwards HRA has been deducted or not paid to employee and Licence fee for quarters has also been deducting monthly. In Form 16 issued by employer, Some amount has been added as perquisites for the period july-18 to mar-19. 1) Whether Housing Perquisites Value to be added or not in Assessee's Income, whereas HRA is not recieving. 2) Is the Housing Accommodation deemed as Rent Free Accommoadation due to HRA deducted/not paid.

Read more at: https://www.caclubindia.com/experts/experts_display_list_unresolved.asp?offset=6&mode=open

Replies (4)

1. Yes

2. No.

Refer:  incometaxindia.gov.in/Rules/Income-Tax-Rules

Sir, Thanks four your valuable reply.

Kindly see the page # 3 & 4 of attached file regarding clarification given by Income Tax Department, Bangalore to HMT Limited, Bangalore on the subject of Treatment of Perquisites on Quarter.

In our case, Employer is deducting/not paying HRA 30% as well as also deducting a nominal amount as licence fee for Quarter/Accommodation from salary per month.

3) is the clarification as attached applicable to us please.

 

Yes, you can take advantage of it.

Thanks a Lot Sir.

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