My employer (a private organization) has recently introduced Perquisite tax for rent free accommodation they provide. For this 10% of the salary is added to the final taxable salary. I wonder if it is a correct way of taxation.
Also, for me, the tax increases significantly and it seems it is much higher than value of the rent free accommodation (because then I also don't get HRA because I opted for a company provided accommodation).
Is there a way out to this? Similar taxation for government employees who live in big houses are so tiny as there are different rules for them.
Please advise.
CAclubindia
