CBDT issued new order: Big change..! In-hand salary of lakhs of employees will increase every month
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The Income Tax Department on Saturday gave major relief to lakhs of salaried taxpayers (employees). The department has made some changes in the rules related to rent free houses. These changes will be implemented soon and after their implementation, the in-hand i.e. take home salary of many salaried taxpayers will increase.
CBDT issued notification
According to a report by news agency PTI, the Central Board of Direct Taxes (CBDT) issued a notification in this regard on Saturday, August 19. This notification is related to rent-free accommodation or rent-free accommodation to be provided by the employers. companies to their employees. The CBDT said in the notification that the proposed changes will come into effect from the beginning of next month.
The changes will come into effect from next month
The Income Tax Department has changed the provisions of the facility for rent-free accommodation. According to the notification, the employees who have been given the facility of rent-free accommodation by the employers will now be able to save more than before and their take home salary is also going to increase. This means that the take home salary of the employees affected by the change will increase from next month, as the new provisions come into effect from 1 September 2023.
Such employees will get benefit
As per the notification, in cases where unfurnished accommodation is provided to employees other than Central Government or State Government employees and the ownership of such accommodation is with the employer, the assessment will now be as follows-
such changed value formula
1) 10% of salary in cities with a population of more than 40 lakhs as per 2011 census. (Earlier it was equal to 15% of the salary in cities with a population of 25 lakhs as per 2001 census.)
2) Equal to 7.5% of salary in cities with population less than 40 lakhs but more than 15 lakhs as per 2011 population. (Earlier it was 10 per cent in cities with a population of 10 to 25 lakhs based on 2001 population.)
This is how you will get benefit
The effect of this decision will be that for the employees who are living in rent free houses provided by their employers, the rent will now be calculated as per the changed formula. The rate of assessment has been reduced in the changed formula. This means that now there will be less deduction from the total salary, which will ultimately mean an increase in take home salary every month.
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