A person is getting benefit of Self Lease wherin he has rented his own accomodation to the employer and the employer pays rent on behalf of the employee and the employee resides in this house.
What is the tax treatment in this case:-
1. Would this be considered as a perquisite?
2. Would the amount paid as Rent be considered as HRA?
3. Would the amount received as Rent be taxable under head Salary or House Property?
It will be considered as Perquisites u/s 17(2), because as the question nowhere says that the employee is receiving HRA. If the employee had received HRA then it would have necessarily been mentioned on the Agreement between employer and employee.
In the Second part the Lessor i.e. the employee will be taxed u/s 22 i.e. Income from House property.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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