Accommodation Perquisite Tax & Government Autonomous Institutes
Accommodation Perquisite Tax & Government Autonomous Institutes Problem: Should Government Autonomous Institutes need to pay a perquisite tax for house accommodation given to its employees, when some institutes of same status are exempted for the same? What rules say: Section 17 (2), Indian Income tax Act says perquisite tax applicable for rent free accommodation or incase concession in rent is given. On application of section 17 (2), Page 21 of deptt circular considers only licence fee as value of perquisite for Government employees but Government autonomous institution’s perquisites are calculated by different rule. And a significant difference in the liabilities of both the types of employees occur. NB: https://www.incometaxindia.gov.in/communications/circular/circular_no_4_2020.pdf Complex Practices: A university at Hisar need not to deduct the income tax as tax department could not show that a concession in rent is given to employees and hence rule 17 (2) not even applicab