Rent Free Accommodation
- This accommodation is given to the employee without any charge and in some cases a nominal rent is received from the employee.
- Such facilities which are given not in cash but in kind by the employer are referred to as Perquisites.
Accommodations is given by employer to employee in following two categories
1. Accommodation given by Govt
Unfurnished Accommodation
| Particulars | Amount |
| License fees determined by Central or State Govt | xxx |
| Less: Rent paid by Employee | (xxx) |
| Taxable Value for added in perquisites | xxxx |
Furnished Accommodation
| Particulars | Amount |
| License fees determined by Central or State Govt | xxx |
| Less: Rent paid by Employee | (xxx) |
| Add: Hire Charges if hired by employer or 10% of Depreciation of furniture if owned by employer | xxx |
| Taxable Value for added in perquisites | xxxx |
2. Accommodation given by Non Govt.
Furnished Accommodation
| If House Owned By employer with Furnished | |
| Particulars | Amount |
| 7.5%/10%/15% Of Salary | xxx |
| Add: Hire charges or 10% of cost of furniture | xxx |
| Total Taxable Furnished perquisites | xxxx |
| If house Hires by Employer with furnished furniture | |
| Particulars | Amount |
| 15% Of Salary | xxx |
| Add: Hire charges or 10% of cost of furniture | xxx |
| Total Taxable Furnished perquisites | xxxx |
3.If employer gives the Hotel Benefit
| Particulars | Amount |
| 24% Of Salary (or) Rent charges paid by employer Which is Lower | xxx |
| Less: Rent by the employee | xxx |
| Total Taxable Furnished perquisites | xxxx |
Important Notes
- If population up to 10 lakh- 7.5% of Salary
- If population more than 10lakh and up to 25 lakh- 10% of Salary
- If Population more than 25 lakh – 15% of Salary
- Salary means it includes of the computation of Rent Free Accommodation in followings
>>> Basic Salary
>>> Taxable allowance
>>> Dearness Allowance
>>> Commission
>>> Bonus
>>> Other Monetary Income Excluding perks
- For computation of Salary should be computed on the basis on due basis, means Salary of current period should be considered. Advance Salary and arrears salary should be ignored.
- Employer contribution towards of Provident fund & Interest on provident furnd should be ignored for computation of salary.
- If Hotel facility provided by employer at the time of transfer of employee and if ti is up to 15 days, then it is not taxable.
