New rules of income tax: big relief to salaried people, rule of rent free accommodation changed, in hand salary will increase
[ad_1]
Rent-free accommodation: The Income Tax Department has laid down rules regarding rent-free accommodation to be provided by the company to its employees…
If you are employed then there is good news for you. In fact, the Income Tax Department has given relief to the people by making major changes in the rules related to rent-free housing. The rules for providing rent-free accommodation to employees by the company have been changed.
The Central Board of Direct Taxes (CBDT) has issued a notification in this regard. After the change in the rules, the employees will now be able to save more. The in hand salary of the employees will increase. Changes in the rules related to rent-free housing have come into effect from 1 September.
The calculation will be done under the new formula.
To put the new rules in simple language, if an employee is living in a house given by the company, then his accounting will now be done under the new formula.
According to the notification, employees other than central or state government employees, who live in company-owned houses. The assessment of their valuation has now been changed. According to the new rule, where the employees are given houses without decoration by the company. The ownership of such accommodation rests with the company itself.
Its valuation will now be done differently. Now in the urban area whose population is more than 40 lakhs as per 2011 census, HR will be 10% of salary. Earlier it was equal to 15 per cent of the salary in cities with a population of 2.5 million as per the 2001 census.
[ad_2]
Source link
