Sec. 17 (2) perquisites

ramesh (L) (51 Points)

08 December 2021  

I am working in a Autonomous BOdy under the Government of INdia, Ministry of Shipping.  My office has provided me residential quarters which is fully owned by my office.  As I am staying in quarters, I am not not paid any HRA and Rs.1835 is also being deducted from my salary towards licence fee.  In the form 16 issued for the FY 20-21 I noticed that an amount of Rs.117000 has been added as income under 17 (2) as perquisites.  On enquiry with my employer, I am told that since our office is not a Central/State Govt department, the amount equivalent to 15% of salary has to be treated as perquisites for availing Residential Quarters accommodation in terms of Rule 3 (1) of Income Tax Rules.  

In my opinion, my office has not provided any rent free accommodation, in the sense that the HRA which I am otherwise eligible if I do not stay in quarters, is not paid to me and also the licence fees is deducted from salary.  If this being so, adding 15% of salary under income head  as perquisite, is not correct and would amount to double taxation. 

Can any one please clarify on this point.  How to solve this problem. I approached Income Tax department who have said that they can do nothing on this and I have to take up with my employer only.  

 

Pl help me with clarification on the above point.  I need this urgent as I have to file my ITR.