valuation of perquisite

If Dormitory Accomodation  (furnished & on sharing basis) is provided to employee what shall be the taxable value of perquisite for the employee? Employee is also paying 5% of basic as dormitory Charges and some amount for furniture rent also per month.

Replies (2)

Dear Preeti,

Value the perq as per provision of Valuation of rent Free or Furnished Accommodation and proportionate of the same will go to employee based on his share in the accommodation and then reduce the rent paid by employee, balance will be taxable as Perq in the hands of employee.

 

Thanks & Regards

 

Hitesh

 

 

here i think its not about theory but practical solution is needed, i dont know if it is correct or not but, here what practicaly can be done, is first acetain the amount of rent paid by the employer from his own pocket, then divide the amount between the number of emplyess sharing the room(on equal basis or some other practical basis) and thus identify the perquisite for each employee

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