Shall pension received be included while calculating the salary needed for valuation od rent free accommodation?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 21 October 2009
NO PENSION SHULD NOT BE INCLUDED..............
Arka Bose
(None)
(313 Points)
Replied 21 October 2009
what is the logic behind this?
As for salary we mean from all past,present and prospective employers.
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 21 October 2009
Because Salary means what he got at tthe time of emplyment ...& pension is part of retirement benefit........
But tell me one thing when any one got the pensuion then how he got rent free accomodation bcoz rent free accomodation is being provided at the time of emplyment...............
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 21 October 2009
hi sourabh Iwill clerify your doubt,
first of all I will tell u meaning of salary for the purpose of rent free accomodation It includes the following:
Basic Pay+D.A.+Commission(Fixed and turnover based both ) + bonous(excluding arrear of bonous)+ Special allowances+ All Taxable allowances(excluding exempted) +All Monetary Payments chargeble to tax.Received from one or more employer.
Monetary payments=Gratuity,leave encashment,pension,retrenchment,ETC.(excluding the exempted part)
So,Pension will be included in meaning of salary.
now I will tell answer your second question
Suppose X is retired from A LTD on 1 july 2008 and getting the pension of rs. 10,000 P.M.After that he joins the B PVT. LTD and B PVT. LTD is providing a rent free accommodation.
Now He is getting both pension and a rent free accommodation.
I think sourabh you have understood .
neerajkumar(CAFA)
(foreign consultant )
(79 Points)
Replied 21 October 2009
very good explained by ravi
from neeraj
PANIPAT-132103
Arka Bose
(None)
(313 Points)
Replied 21 October 2009
Originally posted by :ravi gupta | ||
hi sourabh Iwill clerify your doubt, |
" |
thanks ravi for explaining us
so according to ur example,for the purpose of valuation of rent free accommodation,Rs 10000 pm will be considered.
yes thanks for clearing that out!
CA Arindam Dey
(Chartered Accountant)
(117 Points)
Replied 22 October 2009
sumit
(rohtak)
(48 Points)
Replied 23 October 2009
i want to know that if employee is working in two organisation then the meaning of salary
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)