Changes based on 2011 census data aim to rationalise perquisite calculation, effective from September 1.
Employees enjoying rent-free accommodation will now have higher takeaway salaries, as Income Tax Department has rationalized the computation method for rent-free accommodation.
The Central Board of Direct Taxes (CBDT) has notified the changes in the Income Tax Rules. The changes will come into effect from September 1. Experts say revised computation provisions have been re-introduced, addressing the valuation of rent-free accommodations. These provisions incorporate the insights from 2011 census data and aim to rationalize the perquisite value calculation.
Read more: https://www.thehindubusinessline.com/economy/policy/income-tax-department-revises-rent-free-accommodation-valuation-boosting-take-home-salaries-for-employees/article67211121.ece
© 2018 CA Chandan Agarwal. All rights reserved.