CBDT Relaxes Rules for Valuing Rent-Free Accommodation by Employer
Contents News/Article Date: 19th August 2023
Relating to which Act: The Income Tax Act 1961; Central Board of Revenue Act, 1963
Applicable to which State: Whole of India
Type: Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Press Release dated 19th August 2023 issued by Pr. Commissioner of Income Tax.
Pertains to: Establishments and Employees
Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global’s expert team is fully involved in handling of any type of compliance matters where compliance burden and complex laws falls on businesses like frequent changes and amendments, high penalties, inadequacy of knowledge and expertise with centralized compliance monitoring systems and integrated governance risk and compliance software’s
And in this instance: The Central Board of Direct Tax (CBDT) announced on Saturday that it is amending the way of calculating the ‘perquisite’ value associated with rent-free or concessional living spaces provided by employers to employees. CBDT notified that the The Finance Act, 2023 brought the amendment for modification of Rule 3 of the Income-tax Rules, 1961.
The new rules will provide a major relief to top management players or high salaried employees in corporate as their take home salary will increase.
The amendment of the Income Tax Rule will come to effect from September 1, 2023.
Subject: CBDT Relaxes Rules for Valuing Rent-Free Accommodation by Employer.
Attached is the Press Release