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Self lease treatment

shikha gupta (service) (45 Points)

21 February 2013

sir, our company is providing self lease in place of HRA.KIndly explain me the whole process to show this income and perquisite in form 16 issued by employer and tds aspact also. Can employer take self lease income in income from house property for the purpose of form 16.

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C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 21 February 2013

If company owned house is used then, following is income in hands of employee

if you are staying in a city with a population of more than 20 lakh, 15 per cent of your salary is added, and 10 per cent for cities with a population of 10-20 lakh and 7.5 per cent for all other areas.

If company-leased properties, is used then, following is income in hands of employee

lower of the actual rental paid and 15 per cent of your salary is added as perquisite.