What is salary with regard to Residential accommodation perquisites?. Whether the Basic salary alone to be taken or the net total income?
SANKARAN.G. (Asst.Manager) (95 Points)
30 September 2012What is salary with regard to Residential accommodation perquisites?. Whether the Basic salary alone to be taken or the net total income?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 01 October 2012
As per Rule 3(1) of the I-T Rules, the salary to be takne for teh purpose of valuation of residential accomodation is Basic+D.A.+Bonus. DA shud be taken to the extent it is considered for calcualting retirmetn benefits.
The perquisit would be taken as 15% of the salary as computed above. If furnised accomodation is also provided the value to the tune of 10% of its cost shud be added to teh value of perquisite.