Please Help: Taxability of 2 Houses in RFA
Posted Date : 21-Feb-2012 , 06:28:41 pm | Posted By Mohit Goyal
A Company has provided two houses taken on rent for full year to its CMD for his residence in two different cities.
whether still only 15% of salary will be added to salary for RFA. The actual rent of each house exceeds the limit of 15% of salary.
Please suggest......
whether still only 15% of salary will be added to salary for RFA. The actual rent of each house exceeds the limit of 15% of salary.
Please suggest......
Category : Income Tax | Answers : 3 | Comments : 1 | Hits : 263
Answers
Answer By: Mrattunjay
PLEASE REFER Income tax act 1961, clearly specified the provision. is any doubt for the same?
Please come again.
Please come again.
Answer By: Ashish Karundia
Dear Mohit,
Rule 3 (1) of the Income Tax Rules, 1962 provides that the value of residential accommodation provided by the employer during the previous year, shall, in case where the accommodation is provided by any other employer and where the accommodation is taken on lease or rent by the employer, be the actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.
Thus, in light of the above it can be said the the 15% of salary in respect of each of the houses will be added. (http://incometaxindiapr.gov.in/incometaxindiacr/contents/ITRules2010/rules003.htm - Refer the following link for further information).
Hope the above suffice.
Rule 3 (1) of the Income Tax Rules, 1962 provides that the value of residential accommodation provided by the employer during the previous year, shall, in case where the accommodation is provided by any other employer and where the accommodation is taken on lease or rent by the employer, be the actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.
Thus, in light of the above it can be said the the 15% of salary in respect of each of the houses will be added. (http://incometaxindiapr.gov.in/incometaxindiacr/contents/ITRules2010/rules003.htm - Refer the following link for further information).
Hope the above suffice.
Answer By: Ashish Karundia
Dear Mohit,
PLease read the reply carefully as it is clearly mentioned that 15% in respect of each of the houses i.e. making it 30%.
Hope the above suffice
PLease read the reply carefully as it is clearly mentioned that 15% in respect of each of the houses i.e. making it 30%.
Hope the above suffice
Comments
Mohit Goyal
22-Feb-2012 , 01:14:48 pmDear Ashish Sir, Whether 15% will be added once or it will be added twice making a total of 30%......