IT Dept Lowers Tax For Employees Staying In Company Provided Rent-Free Homes

New Delhi, Sept 1 (KNN) The income tax department has decreased the tax for employees availing company-provided rent-free homes. 

Providing major relief to the taxpayers in this category, the new rule comes into effect from today, September 1, 2023.

The Income tax rules for company-provided rent-free homes is that 10% of salary in cities having a population exceeding 40 lakh as per the 2011 census.

And 7.5% of salary in cities having a population exceeding 15 lakh but not exceeding 40 lakh as per the 2011 census.

The perquisite is that the value of rent-free provided to an employee by the employer is taxable as perquisite.

The taxable value of rent-free accommodation will be reduced which means employees will pay less tax resulting in an increase in their take-home salary.  (KNN Bureau)