Director giving his property rent free to company

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Aliraza (Querist)
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23 April 2010 a) Can a director of a company give his office premises - rent free to the company, will he be taxed separately as deemed income.

b) If the above person is not a director but just a shareholder - holding 75 - 90 % shares, can he still provide his office premises to the company - rent free without being taxed in his personal assessment

the above person is a PIO card holder

srinivasan pooranalingam

srinivasan pooranalingam (Expert)
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23 April 2010 Under the provisions of IT Act,1961, an assessee is entitled to avail the benefit of self-occupied property in respect of one house. If he does not have any other house property he can avail this benefit. Otherwise, notional rent on the property given to the company will be taxed in the hands of the assessee