Hotel accommodation in case of rent-free accommodation

Hello Everyone,

I am kinda stuck in one point relating to income tax and need your help. I am studying Income-tax from two books using one as the main text-book and the other as a refrence book. With regards to 'Accommodation provided by the employer to the employee in  Hotel ,the two books have given divergent treatment .While the first one says that in case the employee's stay at hotel exceeds 15 days, while calculating the value of perquisite ,only the number of days over and above the first 15 days will be considered ,the other book says that the total no of days will be taken into account.    

As for example:- Mr X stays in a hotel for 25 days .The first book says that  value of perquisite will be calculated for 10 days(25-15) while the other book says that it will be calculated for all the 25 days.


Which of the two is the correct approach??

Replies (4)

perquisite is taxable 4 total no of days (25).

No perquisite value even if accomodation provided in a hotel if

1. Such accomodation is provided For a period not exceeding 15days AND

2. It hasbeen provided on the transfer of the employee from one place to another

@ Lalit: Thank you for your reply.

@ Raja: You mean the  no of days over and above 15 days won't be included.? 

if mr X is out of the office purpose work then perquisite is taken for 10 days .

If he is not out for the business work then full 25days perquisite should be taxable

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