05 December 2013
Dear all, kindly help me in solving the following issue- As per the norms of the company an employee is eligible to take a house on rent for rs-10000 and the company will pay the lease rent. But due to high cost of living employees normally do not get accommodations within eligible limits so they go for higher amount and the difference is recovered by the company. Example- Basic salary-RS-30000/- Lease rent paid by company- Rs-14000/- Eligible Lease rent limit-Rs-10,000/- Balance being recover by the company- Rs-4000/- my doubt is what will be value of perks- option-I- value of perk-15% of basic-4500
Option II -15% of Basic-4500 LEss :- rent recovered- 4000 Value of perk-500