Rent free accomdation(rfa) and tax liability

This query is : Open

CA Aditya (Querist)
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19 April 2014 We as Pvt company recruited a consultant and among others perks, provided a RFA worth of 30k.
Company is directly paying 27k rent to land lord after deducting TDS @10% on 30k.

Now company is supposed to deduct the TDS in the hands of consultant also uner 194J . Perquisite value of RFS is Rs 2.4 lacs (1.e 15% of salary or RFA whichever is less) Regards.

Should company deduct TDS @ 10% on above perk ??

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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19 April 2014 Its a perk and is taxable as salary u need to deduct tax under section 192.
Perquisite is a part of salary income.

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CA Aditya

CA Aditya (Querist)
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21 April 2014 Thanks Manoj.

Now is it mean Consultant is to be taxed u/s 192 on RFA( as salary income) and his other remuneration( Approx 60 K towards consultancy fees) taxed under 194 J?

Since in above case of RFA is employee eligible for basis exemption of 2 lacs??

Regards

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