The Central Board of Direct Taxes (CBDT) on 19 August issued a notification to value rent-free accommodation provided by employers, reported news agency PTI.
According to the new notification, the employees having rent-free accommodation provided by their employers and draw substantial salaries can now save more and get a higher take-home salary as the income tax department revised norms.
This new norms will come into effect from 1 September.
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According to the notification, other than the central or state government employees where unfurnished accommodation is provided to employees and such accommodation is owned by the employer then the valuation shall be: (i) 10 per cent of salary (reduced from 15 per cent) in cities having population exceeding 40 lakh as per 2011 census (earlier, 25 lakh as per 2001 census), (ii) 7.5 per cent of salary (reduced from 10 per cent) in cities having population exceeding 15 lakh but not exceeding 40 lakh as per 2011 census (earlier, 10 lakhs but not exceeding 25 lakhs as per 2001 census).
This is a developing story, it will be updated shorty.
Updated: 19 Aug 2023, 02:44 PM IST