query related to tax head.

724 views 9 replies

Hello Friends,

If Mr. A has terminated his service on 31-3-2009. But he still stays in accommodation provided to him by his employer for next 6 months without the permission of his employer. So this rent free accomodation wud be taxable for these 6 months? If yes, under which head would it be taxable..??

Replies (9)

not taxable... bec employer- employee relation dosnt exist any more so HRA is no more an allowence to employee.... employer will b charged to tax undr hea house property

First of all, Rent Free Accomodation cannot be considered as equal to HRA. It is a perquisite as per sec 17(2).. Also, since the person has occupied the house after cessation of his employment with the employer, it cannot be considered as a perquisite since there is no employer - employee relationship.. Hence it will not fall under the head 'Salaries'.. In my opinion, the amount will be taxable under the head 'Income From Other Sources'.... Pls correct me if I'm wrong...

hi friends,

ya i agree too that employee employer relationship has ceased to exist, so in his case there is no income chargaeble to tax in the hand of the employee...

 

correct me if i am wrong.......

any benefit from past- present or future employer shall be taxable as salary

@ Manmohan sir: Thanku... Totally 4got abt dat point..

any benefit from past- present or future employer shall be taxable as salary


 

Ya it is right to say :-

any benefit from past- present or future employer shall be taxable as salary

AGREED WITH FRIENDS, TAXABLE UNDER THE HEAD SALARY. REASONS ARE SO HIGHLIGHTED THATS WHY NO NEED TO REPEAT IT AGAIN.

 

REGARDS,

 

MANOJ

Originally posted by : SAN...

any benefit from past- present or future employer shall be taxable as salary


 

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