One of my clientsis a Whole Time Director in aPvt Ltd Company. He is taking
20,000/- as remuneration/salary from the company. Should he be also given PF,
professional tax and other benefits exactly in same manner given to a regular
employee?He is holding 40% share in the company.
If Company provides him rent free accommodation at Kolkata, will Rs 3000/- ( 15%
of Salary) be added as perquisite? (Actual cost to company for rent is 15000/-
per month.)
Also, will provision U/s 2(22) of Income Tax Act be attracted?
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Perquisites
Replies (3)
perquisite will be added to salary but he can take income tax exemption of HRA
Hi Mr. Alok, 1st of all i wud like to clarify sec 2(22) is not attracted and 2nd as per sec 17(2)(i), rule 3(1)Rs. 3000 p.m will be considered as taxable portion of perquisite. Thanks and regards Suraj Pahuja.
Note: 15% of the salary or Rent paid by the company .whichever is lower. i.e Rs 3000 p.m
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