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+--- Thread: Value of accommodation provided???? (/thread-value-of-accommodation-provided)
Value of accommodation provided???? - smimranhaider - 02-25-2010
If the accommodation is provided by the employer to the employee them how the value of accommodation will be terermined. Either it will be determined from his basic salary???? Suppose basic salary is Rs 20,000/- per month.
- LapTop - 02-25-2010
4. Valuation of Accommodation. - The value of accommodation provided
by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided.
Provided that the value taken for this purpose shall, in any case, not be less than forty five percent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale.
Provided further that where House Rent Allowance is admissible @ thirty per cent, the value taken for the purpose of this rule shall be an amount not less than thirty per cent of minimum of the time scale of basic salary or the basic salary where there is no time scale.
- faisal_desperado - 03-04-2010
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by smimranhaider</i>
<br />If the accommodation is provided by the employer to the employee them how the value of accommodation will be terermined. Either it will be determined from his basic salary???? Suppose basic salary is Rs 20,000/- per month.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Where only accommodation is provided by the employer to its employee, Higher of two amount will be taxable;
- 45% of minimum time scale or basic salary.
- Fair market rent.
In your case, you need to ascertain whether fair market rent is higher or 45% of basic (i.e. 20000*12=240000*45%=108000) is higher, higher of the two amount will be added to the taxable income of the employee.
Regards,
- smimranhaider - 03-04-2010
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by LapTop</i>
<br />4. Valuation of Accommodation. - The value of accommodation provided
by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided.
Provided that the value taken for this purpose shall, in any case, not be less than forty five percent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale.
Provided further that where House Rent Allowance is admissible @ thirty per cent, the value taken for the purpose of this rule shall be an amount not less than thirty per cent of minimum of the time scale of basic salary or the basic salary where there is no time scale.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Sir,
30% wali bat samajh nahi i. iss ki wazahat kar sakte hain please?
- LapTop - 03-04-2010
CORRIGENDUM OF CIRCULAR NO. 6 OF 2008
Anomaly was faced by the salaried persons serving at stations where house rent is admissible at the rate of thirty percent of the minimum of the time scale of basic salary but the value of accommodation provided by the employer was taken for the purpose of
taxation at 45% of the minimum of the time scale. This was causing hardship to the salaried persons serving in the MUFASAL areas. Now a change has been brought that where House Rent allowance is dmissible at the rate of thirty per cent of the minimum of the time scale, the value of house perquisite taken for the purpose of taxation shall be an amount not less than thirty per cent of minimum of the time scale of basic salary or the basic salary where there is no time scale.