Rent free accomodation

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murtaza (Querist)
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21 February 2011 If an employee of xyz co is residing in xyz's customer accomodation in free then housing perk is taxable or not in employee hand if yes then at what percentage

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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21 February 2011 Assuming that population of city is more than 25 lacs where accomodation is provided. The basis of valuation will be as follows:

1. where accomodation is owned by the employer: 15% of the salary during which the accomodation is accupied

2.where accomodation is taken on leaseor rent by the employer: 15% of the salary or lease rent paid or payable whichever is lower.

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