What is the value of perquisite on lease accommodation

Tax queries 1659 views 4 replies

Pramud Barman

Nothing

35 Points Posted on 18 March 2015

I'm an employee of Central PSU & my employer provide us HRA or Lease Accommodation. Now I have taken the option of Lease Accommodation which was taken on lease by the emploer & provided to me. There is a policy of deducting 10% of basic pay or the lease rent (whicever is lower) as a license fee. Kindly tell me the value of perquisite of lease accommodation. Following details are provided

Basic: 20600.00

D.A: 20209.00

Site Development All: 2575.00

Special All.: 624.00

Other All.: 9882.00

Total: Rs 53,890.00

The amount of lease rent is Rs. 15000.00 Per Month & the employer deduct Rs 2060.00 Per Month as License fee. The exempted amount as per income tax is Rs 4500.00 per month.

Kindly let me know the value of perquisite with detail calculation.

Regards

Replies (4)

CMA Poornima Madhava

CMA

13117 Points Posted on 19 March 2015

Perquisite = license fee to CG/SG employees only. If not, then perquisite = 15% salary or lease rent whichever is less, salary = basic + DA + bonus + commission + fees + taxable allowances + monetary payment chargeable to tax. How is the exempted amount ₹4500?

Pramud Barman

Nothing

35 Points Posted on 20 March 2015

Other All.: Rs 9882.00 ( i.e. it consists of allowances such as Washing Allowance, Professional Upgradation Allo., Vehicle Repair & Maintenance Allo., Engagement of Driver Allow., LTC etc ). Out of these allowances, an amount of Rs 4500.00 PM are exempted from Income tax.

Further, I want to know whether the license fee of Rs 2060.00 (10% of Basic Pay) which is deducted Per Month for availing company lease accommodation should be deducted from the gross salary or from the value of perquisite amount.

Pramud Barman

Nothing

35 Points Posted on 20 March 2015

Lease Accomodation Perquisite Value Per Month

Salary
Basic Pay	20600	License Fee	2060
DA	20600	(B) Actual House Rent	15000
SDA	2575
Special All.	824
NESS	200
Cafetria	9682
Total	54481
Gross Total	54481
Salary Exempted	4500
Taxable Salary	49981
(A)15% of Salary	7497

Value of Perquisite ( Lower of A & B)	7497
Less Rent Recov/Licence fees	2060
Net value of Perquisite	5437

Is this calculation correct ????

CMA Poornima Madhava

CMA

13117 Points Posted on 20 March 2015

I think calculation is correct. First 15% of salary or lease rent, whichever is less is computed. From this, the amount deducted by employer is reduced to arrive at the value of perquisite.