Taxation of perquisite

[Mansi Thakkar]

Will perquisite tax attract in the following cases:

1. the employer deputed an employee for three months to his Ahmedabad branch and provides company guest house/ company funded hotel for his stay in Ahmd

2. the employer provides employee, a non-exclusive, rent-free stay in the company guest house, wherein the place will be shared with others and no access to key, etc will be given.

An early reply will be appreciated. Thanks.

[Ramasamy]

Hi,

Accommodation facility provided by company to it's employee on account of transfer from one place to another place subject to taxable perk if stay excceeds 15 days. However, in the given case it is short term deputation, your company  may take the benefit tax free allowance  given in Sec 10(14) read with rule 2BB.

"any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty ";

Regards,
Ram