CBDT extends due date for filing form 10A/10AB up to June 30
The extension was made considering the representations received by CBDT requesting for further extension of due date, and with a view to avoid genuine hardships to taxpayers.
Ministry of Finance has brought changes for the purposes of calculation of ‘perquisite’ with regard to the value of rent-free or concessional accommodation provided to an employee by his employer.
CBDT has modified Rule 3 of the Income Tax Rules, 1961 to provide for the same. The changes imply that the IT Department will lower the tax for employees staying in company-provided rent-free homes.
Under the new rules, the taxable value of rent-free accommodation will be reduced to 10 per cent of the annual salary of the employee.
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Now, employees will have to pay less tax on the rent-free accommodation provided by their employer and their take-home salary will only increase.
It is to be noted that the categorization and the limits of cities and population have now been based on the 2011 Census as against the 2001 Census earlier. The revised limits of the population are 40 lakh in place of 25 lakh and 15 lakh in place of 10 lakh.
The earlier perquisite rates of 15 per cent, 10 per cent and 7.5 per cent of the salary have now been reduced to 10 per cent, 7.5 per cent and 5 per cent of the salary respectively in the amended Rule.
How is residential status determined for taxation?
An individual is treated as a resident of India in a financial year if he or she is in India for a period of 182 days or more in that financial year, or is in India for 60 days or more during that financial year and has been in India for 365 days or more during the last four years.
These conditions are relaxed for Indian citizens if he/she leaves India in any year for the purpose of employment or as a member of the crew of an Indian ship.
If an Indian citizen or a person of Indian origin who resides outside India and who comes to India on a visit and whose total income is up to Rs 15 lakh, then also the conditions are relaxed.
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