free accommodation

In the run-up to Budget 2010-11, the Finance Ministry is mulling a reduction in the number of personal income tax rates from the current three to two. At present, there are three rates - 10, 20 and 30 per cent - and these are applied on slabs that are specified from year to year as part of the Budget. Full Article

After much wait, the new perquisite rules have now been notified last month, which are effective retrospectively from April 1, 2009. By and large, the perquisite rules in respect of rent-free accommodation are similar to the erstwhile rules. Nevertheless, the following points merit attention: Full Article

Salaried taxpayers enjoying perks, such as chauffeur-driven cars, will see their tax outgo jumping in the next three months as the government changed the way these perks are valued and lumps their whole year collection to three months. The Central Board of Direct Taxes on Friday notified new rules for valuation of perquisites provided by employers to employees. It comes with retrospective effect from April 1, 2009, after the Fringe Benefit Tax was abolished and perks be.. Full Article

Employees enjoying perks such as chauffeur-driven cars, rent-free accommodation, club memberships, credit cards and meal vouchers could find the next four months a little too harsh on their wallets as they may have to cough up the entire annual tax on such benefits during this period. Full Article

Where in the reasons recorded seeking reopening of the assessment, the Assessing Officer had failed to disclose as to how he had come to the finding and on the basis of which materials that income chargeable to tax had escaped assessment; the reasons recorded were therefore, ex facie without any foundation and were in fact wholly baseless conclusion; accordingly, the notices issued against the assessee under sections 147/148 were to be quashed. Full Article

New Direct Tax code 2009 has proposed to tax many benefit, receipts, allowances and perquisites which are either tax free or exemption is available in respect of that. We are discussing here some of these provisions. Full Article

Employees enjoying perks such as rent-free accommodation, cars, chauffeurs, credit cards and club memberships may have to pay tax on the value of these benefits, with the government proposing a shift in the tax burden on perquisites (perks) from the employer to the employee. Prior to FY06, employees paid tax on certain perquisites. However, with the [...] Full Article

ACIT v Makote Hoshizaki The perquisite value of rent free accommodation as per Rule 3 of Income-tax Rules, 1962 will be 20 per cent and not 10 per cent of the salary as reduced by the rent, if any, actually paid by the employer or the actual rent paid by the employer in case the premises are not owned by the employer whichever is lower. Full Article