Perquisite value of the accomodation provided

Tax queries 582 views 2 replies
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Article
34 Points Joined March 2011

Please can somebody help me with this:

Suppose X, a private limited company enters into a Live & License Agreement with Z for the residential purpose of the director - Y. Suppose the rent for the month is Rs. 250000. What shall be the perquisite value that shall be added to the salary income of the director (The director earns Rs 100000 p.m. as remmuneration). Assume that the director pays nothing to the company as rent. Will that value differ if the director pays Rs. 15000 in cash to the company as rent for the accomodation provided?

Please assume this to be a case of the A.Y. 12-13.

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On 21 June 2012 at 11:28 Report
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senior excutive
100 Points Joined November 2011

in this case value of rfa shall be calculated as according to buliding not ownde by the empolyer. in such case the value of prequisite shall be 

15% of salary or actual hire chares which is less.

in such a case value shall be 15% of 100000/- or 250000/- which is less.

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On 21 June 2012 at 15:15
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34 Points Joined March 2011

Sanjeev Sir,

Can you please elaborate on the same. Rent free accomodation will it not be charged at the entire value that is Rs. 250000/-?

And as per your explanations shall I calculate the value of the perquisite to be @ Rs. 15000 (15% of Rs. 100000)?

Thanking you for your kind cooperation & help.

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On 21 June 2012 at 15:46


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