RFA - Govt. Employee

Unfurnished - Value of License Fee

Furnished - 

1st assume it as Unfurnished

i.e. value of License fee......................................................................XXX

Add : 10 % of cost of furnished part........................................XXX

Add : Rent Charges, if any................................................................XXX

Less : Concession, if any........................................................................XX

Value of RFA............................................................................................XXXX

hi gaurav doing great work.... can u tell me the treatment (when amount is transferred from unrecognized P.F to Recognized P.F)

project allowance ,  entertainment allowance of non government employee, holiday home allowance is also fully taxable

RFA - Non Govt. Employee

- Owned by employer

    - Unfurnished

    - Furnished

1st assume it as unfurnished

i.e. %age of salary, as computed above.................XXX

Add : 10 % of furnished part......................................XXX

Add : Rent charges of any item.................................XXX

Less : Concession, if any.................................................XXX

Value of RFA........................................................................XXXX

hi rishab....when amount is transfered from UPF to RPF...

transferred balance of UPF, when it is covered into RPF, is also taxable in hands of employeeand hence included in gross salary

RFA - Non Govt. employee

- Taken on rent by emplyer

    - Unfurnished

15 % of salary or Rent actualy paid.........whichever is less

    - Furnished

1st assume it as unfurnished

i.e. as computed above.....................................................XXX

Add : 10 % of furnished part......................................XXX

Add : Rent charges of any item.................................XXX

Less : Concession, if any.................................................XXX

Value of RFA........................................................................XXXX

Meaning od salary for RFA

- Basic Salary

- DA (part of retirement)

- Bonus

- Commission

- Taxable allowances

- any other monetory benefit whether recieved from one or more employer

Hotel accomodation

24 % of salary or rent paid to hotel.....whichever is less

exemption

if hotel accomodation is provided on transfer of duty and

stay in hotel for 15 days only, then it si exempt

but, if even 1 day is extended, then for whole period, tax will be liable for assessee.

not for the whole period ...first 15 days will not be taxable

Exceptions of RFA

RFA wil be a tax free perquisite, if employee is working at

- mining site

-  a project execution site

- a power generation site

- an offshore site, which is

    - temporary nature havinf plinth area, not exeeding 800 sq. ft., is located not less than 8 kms. away from local limits of any municipility or a contonment board

    - is located in a remote area

Fringe Benefits

- Interest free loan

- free meal

- gift in kind

- credit card facility

- use of movable asset

- any other benefit

- touring travelling accomodation

- sale of movable asset

@ rishab...i am nt sure abt this 15 days condition...plz confirm me also...cz i hav never read this condition anywhere

yeah i m sure.It is right

first 15 day will not taxable

n plz correct ur post also so that others dont get confused