02-25-2010, 05:31 PM
Dear it is practice in government organizations that employees hire their own properties or properties registered in the names of their family members in order to get amount of hiring or leasing or house rent. This practice is termed as self hiring. We found self hiring in government organization but it is rarely found in private organization.
In self hiring the amount of rentals received by employee or his family member shall be treated as "Income from Property" . Note it whether the amount of rent is received by employee for property, registered in his name, or whether it is received by his any family member it will be treated as income from property of employee. The amount of rentals shall be chargeable to tax as per rate specified in Division VI of First Schedule of ITO,2001.
In self hiring the amount of rentals received by employee or his family member shall be treated as "Income from Property" . Note it whether the amount of rent is received by employee for property, registered in his name, or whether it is received by his any family member it will be treated as income from property of employee. The amount of rentals shall be chargeable to tax as per rate specified in Division VI of First Schedule of ITO,2001.
