CBDT notifies Rule for determination of value of perquisite in respect of residential accommodation provided by employer

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..... CBDT notifies Rule for determination of value of perquisite in respect of residential accommodation provided by employer - News and Press Release Dated:- 21-8-2023 - News - The Finance Act, 2023 brought in an amendment for the purposes of calculation of perquisite with regard to the value of rent-free or concessional accommodation provided to an employee, by his employer. Accordingly, CBDT h .....

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..... as modified Rule 3 of the Income-tax Rules, 1962 to provide for the same. The categorisation and the limits of cities and population have now been based on the 2011 census as against the 2001 census earlier. The revised limits of population are 40 lakh in place of 25 lakh and 15 lakh in place of 10 lakh. The earlier perquisite rates of 15%, 10% and 7.5% of the salary have now been reduced t .....

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..... o 10%, 7.5% and 5% of the salary respectively in the amended Rule. This is summarised as under: Previous Categorisation and Rates New Categorisation and Rates Population Perquisite Rate Population Perquisite Rate More than 25 lakh 15% .....

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..... More than 40 lakh 10% Between 10 lakh and 25 lakh 10% Between 15 lakh and 40 lakh 7.5% Less than 10 lakh 7.5% Less than 15 lakh 5% The Rule has also been further rationalised so as to compute a fair tax implication of the same ac .....

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..... commodation being occupied by an employee for more than one previous year. Notification No. 65/2023 dated 18 th August, 2023 has been published and is available at https://egazette.nic.in. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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