A is working as a General manager of P co. ltd. Particulars of his salary for the financial year 2009 - 10 are as under:
i) salary 10000 p.m
ii) Bonus 19200
iii) Conveyance allowance (70% spent on official duties) 2000 p.m
iv) Medical allowance 500 p.m
He has been provided with a rent free accomadation in Moradabad whose population exceeds 10 lacs but does not exceeds 25 lacs.
Compute the value of the rent free accomadation to be included in the salary income of A for the assessment year 2010 - 11 , if,
a) the accommodation is owned by the co.
b) the accommodation has been taken on rent by the co. at Rs, 7000 p.m.
please reply as early as poosible.
THANKS IN ADVANCE.
CAclubindia
