Self leased rent perquisite calaculation

ITR 1228 views 3 replies

Ramesh Narasimhan

Accounts Officer

65 Points Joined April 2011

My wife is an employee of a PSU , posted in Hyderabad. She is entitled for company leased accommodation in lieu of HRA. She provided her own flat in Hyderabad to the company as self leased accommodation, for which the company is paying her rent. Simultaneously, the company is adding some perquisite value (Rent Free Accommodation) in her salary income for TDS from her salary.

Now at the time of filing my ITR, would she need to calculate her income from house property? If so, please tell me the calculation of same to avoid double taxing (perquisite value already added to her income from salary) of amount of rent received.

Also will she be entitled to claim the deduction towards municipal taxes paid, flat 30 per cent of annual value ? She has not taken any hosuing loan for the said flat which is leased.

Request the experts to clarify and thanks in advance

Ramesh Narasimhan

Replies (3)

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

In my opinion there is no double taxation my view is based on this thought e.g if such house owner is a person other than wife in such case peould be added in salary and the amount received by the owner is taxable in his hand as rental income.In ur case mere ur wife is a ourperquisiteururer it doesn't make any difference in computation of total income. Yes ur wife is eligible for all deductions allowed in computation of income under house property.

Ramesh Narasimhan

Accounts Officer

65 Points Joined April 2011

Thanks Mr Chander. But I understand that property tax and standard deduction of 30% is available only when a housing loan is availed. Please clarify whether this is available inspite of not having a housing loan.

Ramesh Narasimhan

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

There is no such type of condition as you said, in ur case property tax is allowable if actually paid and flat 30% u/s 24(a) standard deduction allowed on nav.