I am working in a autonomous body under the Ministry of Shipping. I stay in the Staff Quarters and I am not paid HRA which I am eligible if I am not staying in Staff Quarters. Further, a licence fee is deducted from my salary every month.
In my Form 16 issued by my emplyer, I find that an amount of Rs.116000/- (has been added under Sec.17 (2) of IT Act towards perquisites (notional income for availing rent free accommodation) and income tax deducted on that also.
On enquiry, my employer informed that as our organisation is not a central/state govt department, my stay in staff quarters will be treated as perquisites earned and will be taxable.
I need a clarification on the following::
(i) I am not paid HRA because of my stay in quarters for which I am eligible if I stay outside.
(ii) Licence fee is deducted every month as is being done to Govt employees
(iv) I am eligible for normal government pension on my retirement
(iii) I am not private sector employee as my organisation is self financing autonomous body deriving no budgetary provisions from govt of india.
Considering all above (i) to (iv), is it right to treat my stay in quarters as perquisite and charge income tax on the same. Pl. clarify
CAclubindia
