Dear Sir,
This is regarding the value of perquisites.
As Fringe benefit tax had been abolished by SC, value of perquisites are being added to gross salary by the employer in order to calculate the income tax liability.
I am working in a PSU, am provided a non-furnished accommodation from my employer for which I am paying license fee and also I have to loose my HRA due to company provided accommodation. I am living in a metro.
My querry is that -" do I need to add 15% of my salary to my gross income in order to calculate my income tax liability ( as the value of perquisites)?"
What I believe is that - " Since I am giving up my HRA ( 30% of basic) and paying license fee for the non-furnished accommodation I have got, it will not be considered as rent free accommodation. Hence 15% amount should Not be added to my salary to calculate the income tax." I don't know my understanding is right or not.
Kindly guide.
regards