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Calculation Of Rent Free Accomodation

arun (ca student) (194 Points)

11 July 2008

When we calculate the Rent free accomodation we will add All cash taxable recipts except DA (which is not a of retirement benefits).

So my question is that if the person retires from the job and leave the house then the retirement benefits like Gratuity, pension & leave encashment will added for the calculation of Rent free accomodation because it is also a cash taxable receipt after taking exemption.

And what will be the answer if he occupy the house after retirement.

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3 Replies

CA MOHIT VAATS (Consultant) (554 Points)
Replied 12 July 2008

Hello Arun,

Yes, it will include while calculating the same b'coz as per the definition of salary while calculating the Rent Free Accomodation is as follow:

Basic Salary, DA(For retirement Benefit),Bonus,Commission,Fees, Taxable value of alllowance & Any other monetary payment by whatever called...

So it will included while calculating the same.

And the second answer of your query is if he still ocupied the house after retirement if it is owned by the employer then 20% of salary-Rent paid or in case Lease rent then AMount of lease or 20% of salary whichever is less- Rent paid by employeeeeee....