How is perquisite tax calculated on leased accommodation? - About taxes and not only
How is perquisite tax calculated on leased accommodation?
Is leased accommodation taxable?
How is tax calculated on rent free accommodation?
What are perquisites how perquisites valuations done according to tax law?
How is accommodation perk calculated?
What is self leased accommodation?
What are the taxable perquisites?
What is tax free perquisite?
What is meant by perquisite give five examples of tax free perquisites?
What is perquisite under income from salaries?
Company-leased accommodation is taxable as a perquisite in the hands of the employee, and its value is determined as per the income tax rules. … Whether the accommodation is a hotel/ serviced apartment/ owned by the employer or leased by the employer for you. Whether the accommodation is furnished or not. Your salary …
Calculation of TDS/tax on perquisites:
Income chargeable under head ‘Salaries’: Rs 8,00,000. … Average rate of tax [ (75,400/800000) x 100 ] = 9.4% Tax payable on Rs 90,000 = (9.24% of 90,000) = Rs 8316.
Unfurnished Accommodation:
Income tax levied will be 15% of the income or salary earned by the employee minus the actual rent that the employee pays to his or her employer. …
Income tax levied will be 10% of the income or salary earned by the employee minus the actual rent that the employee pays to his or her employer.
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Value of perquisite will be computed as follows: Value of perquisite will be calculated at the rate of Rs. 1,800 per month where the cubic capacity of the engine does not exceed 1.6 litres (i.e., 1600 cc) or Rs. 2,400 per month, if the cubic capacity of the engine exceeds 1.6 litres and Rs.
Thus, perk value = Lower of (Rs. 60,000 or 15% of Rs. 1,69,000) less Rs.
Whether the house is owned by the company or rented / leased by it.
Lease amount / rent paid by the company, if applicable.
Rent paid by you, if applicable.
Whether the house is furnished or not.
Self lease means the property owner is employee and employer takes this property on rent from employee then again given to employee for residing th eemployee for which employer pays.
Taxable Perquisites:
Some of the perquisites that are taxable in nature are rent-free accommodation, supply of gas, water and electricity, professional tax of employee, reimbursement of medical expense, and salary of servant employed by employee.
House Rent Allowance is a kind of Allowance that an employee gets from his or her employer for fulfilling the rental expenses of their house. RFA is accommodation which covers house or property provided by the employer for the residential purpose of the employee.
“Perquisite” may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. “Perquisite” is defined in the section 17(2) of the Income tax Act as including: (i) Value of rent-free/concessional rent accommodation provided by the employer.
Perquisites are emoluments or benefits received from an employer, in addition to salary. For example, Rent-free accommodation. Free electricity, gas and water supply.