Valuation of rent free accomodation

Shall pension received be included while calculating the salary needed for valuation od rent free accommodation? 

Replies (11)

NO PENSION SHULD NOT BE INCLUDED..............

 what is the logic behind this?

As for salary we mean from all past,present and prospective employers.

 

Because Salary means what he got at tthe time of emplyment ...& pension is part of retirement benefit........

But tell me one thing when any one got the pensuion then how he got rent free accomodation bcoz rent free accomodation is being provided at the time of emplyment...............

hi sourabh Iwill clerify your doubt,

first of all I will tell u meaning of salary for the purpose of rent free accomodation It includes the following:

Basic Pay+D.A.+Commission(Fixed and turnover based both ) + bonous(excluding arrear of bonous)+ Special allowances+ All Taxable allowances(excluding exempted) +All Monetary Payments chargeble to tax.Received from one or more employer.

Monetary payments=Gratuity,leave encashment,pension,retrenchment,ETC.(excluding the exempted part)

So,Pension will be included in meaning of salary.

now I will tell answer  your second question

Suppose X is retired from A LTD on 1 july 2008 and getting the pension of rs. 10,000 P.M.After that he joins the B PVT. LTD and B PVT. LTD is providing a rent free accommodation.

Now  He is getting both pension and a rent free accommodation.

I think sourabh you have understood .

 

 

 

gud explanation ravi

very good explained by ravi

from neeraj

PANIPAT-132103

Originally posted by :ravi gupta


hi sourabh Iwill clerify your doubt,

first of all I will tell u meaning of salary for the purpose of rent free accomodation It includes the following:

Basic Pay+D.A.+Commission(Fixed and turnover based both ) + bonous(excluding arrear of bonous)+ Special allowances+ All Taxable allowances(excluding exempted) +All Monetary Payments chargeble to tax.Received from one or more employer.

Monetary payments=Gratuity,leave encashment,pension,retrenchment,ETC.(excluding the exempted part)

So,Pension will be included in meaning of salary.

now I will tell answer  your second question

Suppose X is retired from A LTD on 1 july 2008 and getting the pension of rs. 10,000 P.M.After that he joins the B PVT. LTD and B PVT. LTD is providing a rent free accommodation.

Now  He is getting both pension and a rent free accommodation.

I think sourabh you have understood .

 

"

thanks ravi for explaining us 

so according to ur example,for the purpose of valuation of rent free accommodation,Rs 10000 pm will be considered.

yes thanks for clearing that out!

 

gud 1
Pension received by an employee may be viewed in two portions- Uncommuted Pension and Commuted Pension. While calculating salary for the purpose of rent free accomodation the former is always included while later portion is included to the extent not exempt u/s 10(10A).

i want to know that if employee is working in two organisation then the meaning of salary

thanxxx 4 appreciating me

 

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