Tax on perquisites and rent paid by employer to employee

You are getting a monthly amount of 20000 and yearly perquisite of 140000 which means total amount is 380000.

Why are you getting rent as well as perquisites?

Perquisites are provided if your employer is providing you some property or taking some property on lease for you.

Perquisite amount taxable would be for unfurnished flat:

Rent paid or 15% of salary whichever is lower less rent recovered from you.

Since you are owning house yourself i dont think you will get any benefit.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Dear Sir,

Hope you are doing well !!

For tax purposes, the accommodation provided by the company is treated as a ‘perquisite’ in the hands of employee and is considered to be a part of taxable salary. The value of such accommodation is calculated as 15% of the salary or actual rent paid by the employer, whichever is lower.

In your case, there will be no exemption on rent amount as well as perquisites.

Section 10(10cc) says that any tax paid by employer on any perquisite provided by him shall not be considered as perquisite for employee i.e. tax amount shall not be considered as perquisite.

As far as your case is concerned I dont think you can save tax on rent received where you own the house.

Standard deduction available is ₹40000 which is general.

Hope this is satisfactory for you.

Yes, both the above components shall be included in your taxable income.

1. Entire 20k shall be included in your income

2. The value of non monetary perquisites shall be 15% of the salary or actual rent paid by the employer, whichever is lower

Section 10 (10CC) is for different purpose and not applicable in this case

- Rs.2,80,000 will be treated as rent and taxable under the head income from house property. 30% annual deduction would be available against the rent i.e. Rs.1,96,000 will be taxable.

- In case of non-monetary perquisites, licence value would be taxable.

No, 10 (10CC) is not applicable in this case.

Hello,

Since you have taken the self lease accommodation, you were eligible for HRA exemption. But since it has been removed as you mentioned, you won't be eligible to get any other deduction. 

Both Rent and Perquisite amount would be taxable. Perquisite value is the lower of 1) 15% of taxable salary excluding the value of perquisites; or 2) Actual rent paid by the company.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Section 10 (10CC) is not applicable.

Standard Deduction of Rs. 40,000 would be available.