TDS and Rent Free Accommodation

In many cases i have seen 12BA form attached with Form 16 which is regarding perquisites. You have to provide both forms as they solve different purpose . Form 16 shows the salary descripttion, TDS, and any other income -for filling return its necessary. Form 12BA explains the perquisites value provided to employee.

Thank you sir.

now returns have become electronic....even paper return is not to be attached with any certificate.

I would like to get some clarification.  Suppose a person is drawing monthly professional fees rs 80000 and I am deducting TDS and paying the balance amount now the company decided to reimburse his house rent (say rs 10000 per month) so how should i will treat this nature of expenses, becuase he is not cover under salary but he is permanant employee of Company.

Should i deducted TDS on this rs 10000 or if i will treat reimbursment of house rent that means it will attract FBT on the company??? pl clarify

Regards Jyoti

Joyti : normally its depends on company policy. However if u specifally book to rent alc

than u must have to deduct tds if yearly rent above 120000/- otherwise if  u booked to any other

account as allowance or facility provided by company to employee (without deducting any tax )than it is chargable to FBT as facility provided by company to employee

jyoti: U said u give the person 'professional fees' and later u said he the permanent employee of ur company...........an employee is given salary and professionals who render professional services r given professional fees......

ur payment may be deemed professional fees only if that person is not ur permanent employee but u take professional services from him on monthly basis..........

Since u mentioned that u deduct TDS as professional fees, then the payment by u of Rs.10000 is his income in the course of profession and no TDS will be deducted on this payment under any section of TDS chapter in income tax........accordingly u can reimburse the amount without withholding any tax on it..........

and as for FBT, the payment of Rs.10000 is no covered under any clause of FBT the benificiary is not an employee............

boss, let me clear it,

a) an employee draw monthly professional fees & TDS is deducted u/s 194J, ok fine
b) now the company decided to reimburse his house rent, say rs 10000 per month as he is under professional so i can't consider him accommodation provided by Company accordingly. so how & what manner I will reimburse rs 10000. Could I book under "RENT a/c" but this is reimbursment so should i proceeds with "RENT REIMBURSEMNET Ac/" if rent reimbursment then it mean Company is giving benefit to a person then it will attract FBT. or not. ...... Jyoti

Hey Jyoti

Look as u told that an employee draw prfessional fees & TDS deduted on it &  company now decide to reimburse his house rent Rs. 10000. So if he raises consolidate bill then TDS on full amount otherwise TDS only on professional fees and no TDS on rent reimbursement.

now talking abt FBT, if company give some benefits to employee then  FBT & in that case he is not employee , so no FBT.

Regards

SORABH GUPTA