01 An amendment has been made in section 17(2) IT Act by finance Act 2007 with retrospective effect from Assessment year 2006-07.
02 By this amendment of secretion 17(2) read with rule 3,value of perquisite for accommodation to employees where such accommodation is owned by employer has been reduced to 7.5% from earlier rate of 15%.
03 The effect of this amendment has resulted in taxable perquisite being reduced and consequently gross salary of employees reduced by 7.5%.
04 The employees has submitted their return of income pertaining to F.Y.2005-06 relevant to Assessment Year 2006-07 showing perquisite on rent free accommodation @ 15% because this was the law at that time. The law has been amended only thereafter but with retrospective effect Assessment Year 2006-07.
05 The query is -i) Are the employees entitled to get back refund for this change in Law?
ii) If they are entitled, should they file revised return or simply a petition detailing amendment and working out fresh computation of income?
iii) The tax authorities upto CIT level has been contacted and they agree that from plain reading of Law, it appears that assesses are entitled to refund but even after filing petition and/or revised return 4 months back, they are not acting upon the same but asking for some more time to get clarification. Please advice
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