Dear Friens,
What is the perquisite value of Quarters in the following case?
A person living in the Quarters of BSNL is not paid HRA while other employees not living in Quarters are paid HRA at 10% of Basic salary. In addition a license fee of Rs.378 per month is deducted from his salary. As per Income Tax Act, perquisite value is calculated at 7.5% of Gross pay less license fee less rent already paid. In this case, since HRA is not paid, will it be construed as payment of rent or not. What is the perquisite value of Quarters? HRA is not included in his salary for calculation of Tax.
CAclubindia
