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Please explain the following lines with example

1. This cateogary includes those central and state goverment employees who are deputation to a public sector undertaking but the accommodation is provided by the central or state goverment

2. Rent free accomodation provided to high court judges is exempt frpm tax. A similar exemption is extended to an official of parliament, a union minister and a leader of opposition in parliament. In this line explain only who are official of parliament .union minister and leader of opposition in parliament

Replies (1)

Amir

Learner

4898 Points Posted on 16 March 2010

Dear Anuj,

Deputation in this context means say Mr. A is an employee of ABC Ltd. has been deputed to work for XYZ Ltd, now he will continue to draw his salary from ABC Ltd. but he will work for XYZ Ltd.

Reasons would be because of superannuation of any employee in XYZ Ltd. or the urgency of situation requires, etc

These things generally happens in Govt. Sector or across Companies under 1 Big Group.

Nw there r separate rules for valuation of RFA for Govt Employees (Remember PSU Employees r not considered as Govt. Emplyees for Income Tax purposes),

So the lines highlighted by u is just a clarification that Govt. Employees on Deputation where accomodation is provided by Govt. itself will be covered.

Regarding ur second query I couldnt find any definition of "official"......I think it would cover only MPs..wot say..:I m not sure........