valuation of perqs

This query is : Resolved

p.e.rao

p.e.rao (Querist)
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14 January 2010 Is there any difference between allowances and perqs in income tax law ?.

Does the salary include perqs also on which tax is already calculated for the purpose of calculation of valuation of housing accommodation provided by the employer? Reference notification on valuation of perqs dt 18.12.2009.
Please comment

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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14 January 2010 Allowance are being mentioned in section 10 wheras perquisites in section 17(2) of Income Tax Act, 1961

If tax has already calculatedint he hands of employer then no tax in the hands of employee

p.e.rao

p.e.rao (Querist)
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15 January 2010 My query is "if the perqs are taxed in the hands of employee, will the same perqs once again get added to salary for the purpose of calculation of valuation of housing accommodation provided by the employer". Please comment.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 January 2010 No.Perks are not added to Salary for Calculating Rent free accomodation. Salary meaning for Rent free accomodation not including any perks

p.e.rao

p.e.rao (Querist)
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16 January 2010 Thanks