Flat given to employees
This query is : Resolved
01 July 2021
Dear Expert, As one of my client purchase flats for their employee and term & condition of employment is employees can stat in that flats and those employees who will in continuation of job will get for 10 yrs. will be give the flat at free of cost after 10 yrs. My queries are as follows :
1. How to calculate perq till they are in employment at what basis for free accomdation.
2. After 10 yrs. if flat will be given to employee, what will be treatment in the hands of employees will be treated as capital Receipt or Revenue and same way for employer, any capital gain will attract.
3. can employer claim depreciation on flat, since all above are in terms of employment.
1. How to calculate perq till they are in employment at what basis for free accomdation.
2. After 10 yrs. if flat will be given to employee, what will be treatment in the hands of employees will be treated as capital Receipt or Revenue and same way for employer, any capital gain will attract.
3. can employer claim depreciation on flat, since all above are in terms of employment.
02 July 2021
1 Calculate perq based on rental rates prevailing in that location.
2 lt will be considered as gift to employees(value considered for stamp duty) and added to salary of the employees and taxed.
3 Depreciation can be claimed.
2 lt will be considered as gift to employees(value considered for stamp duty) and added to salary of the employees and taxed.
3 Depreciation can be claimed.
02 July 2021
Any capital Gain for empolyer? instead of gift as I feel can be taken as perq, since it is in term of employment.
02 July 2021
It will fall under gift only as property transferred without adequate consideration.
Capital gains to employer will not arise as it's given as gift.
Capital gains to employer will not arise as it's given as gift.
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