With this, the workers who get better salary and live in rent free accommodation provided by the employer company will now be able to save more and they will be able to take more cash as salary.
Rent-Free Accommodation 2023 : There is important news for employed and private sector employees.: The Income Tax Department is going to change the rules related to Rent-Free Accommodation from 1st September. Employees getting good salary and living in rent-free home provided by the employer company will now be able to save more.
New rules of salary will be applicable from September
In fact, before Raksha Bandhan, the Income Tax Department has changed the rules for valuing rent-free homes given to employees by the company, for which the CBDT has reduced the limit of perquisite valuation. This means that now there will be less tax deduction in the salary, which will result in more salary in the month. These rules will be effective from 1 September 2023.
Take home salary will increase
According to the new IT rules, where unfurnished accommodation is given to employees by the employer, and the ownership of such accommodation is with the company itself, its valuation will now be done differently. With this, workers who get better wages and live in rent-free accommodation provided by the employer company will now be able to save more and take more cash as salary. These provisions include the data of 2011 census, The purpose of which is to rationalize the Perquisite Value Calculation.
How will be the salary calculation
As per the notification, where mere accommodation (unfurnished) is provided to employees other than Central or State Government employees and such accommodation is owned by the employer, the assessment shall be- Cities with population of more than 40 lakhs as per 2011 census 10 per cent (less than 15 per cent) of pay in Earlier this rule was for population more than 25 lakh as per 2001 census. The same 7.5 percent (less than 10 percent) of the salary in cities with a population of more than 1.5 million but less than 4 million according to the 2011 census. Earlier it was more than 10 lakh but not more than 25 lakh as per 2001 census.
