If a company provides free accommodation and other travel allowances but does not mention them in the salary slip, and the employee is not in the tax bracket where those details are displayed during income tax deductions, how can the employee show the accommodation and travel allowance details in their Cost to Company (CTC) when switching jobs if the company does not provide those documents?
From India, Pune
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From India, Pune
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Why should accommodation and conveyance be shown in the salary slip?
It is not required, and if any company is doing so, it is not right. In the income tax papers (Form 16), it will be reflected as perquisites, and tax will be deducted based on that only. If you are worried about the cost to the company that your future employer may fix or the CTC that you can bargain with the employer, you can show the appointment order in which there should be a mention of the free accommodation and car provided. That is enough, and over and above that, there will not be any proof of having rent-free accommodation and conveyance.
From India, Kannur
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4509It is not required, and if any company is doing so, it is not right. In the income tax papers (Form 16), it will be reflected as perquisites, and tax will be deducted based on that only. If you are worried about the cost to the company that your future employer may fix or the CTC that you can bargain with the employer, you can show the appointment order in which there should be a mention of the free accommodation and car provided. That is enough, and over and above that, there will not be any proof of having rent-free accommodation and conveyance.
From India, Kannur
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Thank you so much for your valuable insights. Still, if the new employer is asking for a breakdown of the free accommodation that the company is providing me, should I disclose this information so they can make an offer? Would it be advisable not to join a company that requests this level of detail?
From India, Pune
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From India, Pune
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Still if employer has given accommodation in remote area it is exempted from form 16b than how to show accommodation expenses to new employer
From India, Pune
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From India, Pune
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Negotiating Offer Details and Accommodation
That can be bargained when an offer comes. After all, the accommodation, etc., would be available only for such posts where the salary is fixed by negotiation. You are free to negotiate, and if they are not convinced, never join that company. Good companies will not include the rental value of accommodation in the payslips, but it is understood that you would not have resided in a hut but would have been provided with nice furnished accommodation. If the employer requires proof of it, just say goodbye to them. Never trust such companies.
From India, Kannur
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That can be bargained when an offer comes. After all, the accommodation, etc., would be available only for such posts where the salary is fixed by negotiation. You are free to negotiate, and if they are not convinced, never join that company. Good companies will not include the rental value of accommodation in the payslips, but it is understood that you would not have resided in a hut but would have been provided with nice furnished accommodation. If the employer requires proof of it, just say goodbye to them. Never trust such companies.
From India, Kannur
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Thank you for your advice. I will keep that in mind while negotiating with another company. The new employer offered me a salary based solely on my payslip, which was quite low for a metropolitan city, so I declined the offer. Additionally, the HR representative of the new employer displayed arrogance by implying a lack of trust regarding accommodation expenses, suggesting that they might as well offer a private jet for transport allowances if they were to trust me. This incident reinforced my decision to reject the offer.
From India, Pune
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From India, Pune
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CTC details.xls
Salary details for CTC.pdf