INCOME TAX

PRESENTED By
SUJINI SURESH
. B.COM 3RD YEAR
ROLL NO : 538
. ST. PETER’S COLLEGE
KOLENCHERY
 Valuation of rent free accommodation contd..
Where accommodation is hired by the employer
Actual rent payable by the employer
or
15% of salary for the relevant period
which ever is less is the value of unfurnished accommodation

When furniture is provided

+ 10% of the cost of furniture/hire charges
Any amount paid by the employee is deducted to get value of accommodation at
concessional rent
 Accommodation provided in a hotel
• In connection with transfer and the period doesn’t exceed 15 days:
the value is taken as nil.
• In any other case
24% of salary for the relevant period
or
actual charges payable to such hotel
whichever is less is the value
Accommodation provided at site

Where accommodation is at a mining site/ project execution

site/onshore oil exploration site/dam site/ power generation
site/off-shore site
which is
temporary, plinth area does not exceed 800 sq.feet and is
located not less than 8 k.m away from municipality or in
cantonment board or in a remote area
value is Nil
 More than one accommodation in connection with
transfer
One accommodation with low value is taken up to 90 days

After 90 days both accommodations are valued

THANK YOU