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Rent Free Accomodation by CG

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shivani

student

115 Points Posted on 12 October 2023

employer is central government and providing rent Free Accomodation to employees.
CG (employer) doesn't own the house and therefore CG (employer) deducts TDS u/s 194-I on rent payment to landlord.

now the question is, whether this Rent free accomodation is taxable in the hands of employees? as CG (employer) has already deducted TDS on rent payment.

if yes, then isn't it attract double taxation on single rent income??

Replies (4)

Quick Summary

This discussion explores whether rent-free accommodation provided by the Central Government (CG) is taxable for employees. The CG deducts Tax Deducted at Source (TDS) under Section 194-I on rent paid to landlords. The core question is whether this arrangement leads to double taxation for the employee, as the CG has already accounted for the rent expense via TDS.

Ashwin Kumar

CA ipcc

449 Points Posted on 12 October 2023

It is not taxable (in general sense)...if it's shown as a perquisite in form 16 then it's taxable

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 12 October 2023

@ Shivani,

CG paid rent to LANDLORD...
TDS deducted on rent by CG...

My Doubt is ;
Where is come employee in this transaction...??!

sabyasachi mukherjee

Profession

28271 Points Posted on 13 October 2023

That is a portion. of perquisites...
But since values had not been posted.We cannot arrive at any consensus.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 13 October 2023

Originally posted by : sabyasachi mukherjee
	That is a portion. of perquisites...But since values had not been posted.We cannot arrive at any consensus.