Tax on House Rent & Car Allownces
K.K.Ganguly
(Querist) 31 March 2011
This query is : Resolved
Would the learned Experts guide enlighten me in the following?
My question is, in the financial year 2011-12;
1) Will House Rent allowance paid by the Employer to me be considered as my Income & be Taxed?
2) What rebate I will get if I take up a house against rent? Is there a maximum limit for getting rebate towards House Rent paid? Is it Rs.24,000/- per year only?
3) If my Company gives me a quarter or leased accommodation taking lease in their name, will that leased amount paid by my Company to the landlord be added as my Income & Taxed?
4) Similarly, will the amount paid by Company to me as Car & Driver allowance be treated as my Income & Taxed?
5) If my Company allot me a car along with Driver, will the amount paid by my Company towards the said Car& Driver be treated as my Income & taxed?
6) What will be benificial, taking the above allowances & then leasing house in own name & hiring driver & Car myself or
Telling the Company to provide both the facilities i.e. free house & Car to me?
7) Is the answer to the above questions be same for a resident Indian & a Singaporean Citizen who will work in India in the year 2011-12?
Thanks in advance.
soumitra basu
(Expert) 15 April 2011
Answers :
1. Yes
2. It is - rent paid in excess of 10% of basic and D.A. or House Rent Received whichever is less. There is no ceiling of 24,000.
3. Yes as perquisite.
4. Yes
5. Yes
6. It depends upon the actual calculation and companies policy.
7. Yes
