Dear Experts, Our company is planning to take a house as residential accommodation for our personnel. The rent is split into the House Rent and Furniture and Fittings, i.e., Total Rent is Rs. 25,000/-, in that Rs. 15,000/- as House Rent and the remaining Rs. 10,000/- is for Furniture and Fittings. Hence, please clarify whether both are subject to TDS, or only the House Rent is taxable?
Regards, PBS KUMAR
From India, Kakinada
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592Regards, PBS KUMAR
From India, Kakinada
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I think both the components will attract TDS. They are charging rent for Furnishings, therefore, it comes into rent. Pon
From India, Lucknow
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From India, Lucknow
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TDS has to be deducted if rent during the year exceeds Rs.180000. Rent for furniture, furnishings etc would be included in rent amount for computing TDS.
From India, Delhi
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From India, Delhi
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Dear Mr. Kumar,
Taxation on Rent-Free Accommodation
Rent-free accommodation is not directly taxable. However, if you are in metro cities, 15% of your gross salary will be added towards perquisites and will be taxed. For other cities, it is 10%. Therefore, while considering this option, you should determine which option is more beneficial.
Taxation on Furnishing Allowance
Furnishing allowance is also taxable at 10% of the cost rent on furniture.
Regards,
VGKNAIRVKM
From India, Bangalore
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Taxation on Rent-Free Accommodation
Rent-free accommodation is not directly taxable. However, if you are in metro cities, 15% of your gross salary will be added towards perquisites and will be taxed. For other cities, it is 10%. Therefore, while considering this option, you should determine which option is more beneficial.
Taxation on Furnishing Allowance
Furnishing allowance is also taxable at 10% of the cost rent on furniture.
Regards,
VGKNAIRVKM
From India, Bangalore
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W B Workmen's House Rent Allowance Act, 1974.pdf