The employer provided rent free unfurnished accommodation to his employee. The house was rented by the employer on a rent of ₹ 1,50,000 p.a. but he has given a interest free refundable security deposit of ₹ 10,00,000 to the landlord. The assessing officer is of the opinion that value of perquisite shall include a notional interest @ 12% p.a. The salary for the purpose of computing the value of rent free accommodation is ₹ 12,00,000. The Value of perquisite in respect of the house shall be considered as:
A. 1,50,000
B. 2,70,000
C. 15% of ₹ 12,00,000 i.e ₹ 1,80,000.
D. At the option of assessing officer any of the above.
Answer:A
The employer provided rent free unfurnished accommodation to his employee. The house was rented by the employer on a rent of ₹ 1,50,000 p.a. but he has given a interest free refundable security deposit of ₹ 10,00,000 to the landlord. The assessing officer is of the opinion that value of perquisite shall include a notional interest @ 12% p.a. The salary for the purpose of computing the value of rent free accommodation is ₹ 12,00,000. The Value of perquisite in respect of the house shall be considered as:
A. 1,50,000 B. 2,70,000 C. 15% of ₹ 12,00,000 i.e ₹ 1,80,000. D. At the option of assessing officer any of the above.