Mr. Arjun employed in KL (P.) Ltd. at Mumbai was provided rent-free accommodation by the employer who owned such accommodation. The salary income of Mr. Arjun for the purpose of computing the perquisite value is ₹ 8 lakhs. The perquisite value of rent free accommodation in the hands of Mr. Arjun is:
A. 10% of salary i.e. ₹ 80,000
B. 7.5% of salary i.e. ₹ 60,000
C. Nil
D. 15% of salary Le. ₹ 1,20,000
Answer:D
Mr. Arjun employed in KL (P.) Ltd. at Mumbai was provided rent-free accommodation by the employer who owned such accommodation. The salary income of Mr. Arjun for the purpose of computing the perquisite value is ₹ 8 lakhs. The perquisite value of rent free accommodation in the hands of Mr. Arjun is:
A. 10% of salary i.e. ₹ 80,000 B. 7.5% of salary i.e. ₹ 60,000 C. Nil D. 15% of salary Le. ₹ 1,20,000