Legal Question in Tax Law in India

perquisite tax for accommodation

I am a central gvt employee and at present working on depuation in a Public sector under taking. I am staying in the un furnished quarters provided by the PSU. As per the clarification given by the income tax dept, i need not pay any perquisite tax for the accommodation. The same was given clearly in the incometaxindia web site clearly. However, the finance team in our PSU wrote to income tax dept asking them who is the emploer for the central govt employees on deputation. Income tax dept replied saying that , since PSU is paying the salary hence, psu is the employer. Based on this advance perquisite tax for the accomodation is being deducted from my salary. Even though i am getting the salary from the PSU, i am drawing only central govt scales. Kindly advise me, whether i have to pay perquisite tax ?. With out my knowledge whether govt can change the employer ?. Thanks in advance.


Asked on 1/09/08, 2:53 am

1 Answer from Attorneys

Homi Maratha N.N. Maratha & Co.-Advocates

Re: perquisite tax for accommodation

Yes you have to pay the tax.

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Answered on 1/11/08, 4:02 am


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