Kapil gets salary of ₹12,000 p.m. and is provided with rent-free unfurnished accommodation at Pune (population 20 lakh). House is owned by employer, fair rental value of which is ₹1,400 p.m. House was provided with effec

CS Executive · Tax Laws and Practice · PYQS · December 2015
Kapil gets salary of ₹12,000 p.m. and is provided with rent-free unfurnished accommodation at Pune (population 20 lakh). House is owned by employer, fair rental value of which is ₹1,400 p.m. House was provided with effect from 1st July, 2014. Value of the perquisite of rent-free accommodation will be
(A) ₹21,600
(B) ₹10,800
(C) ₹16,200
(D) ₹12,600.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B). Official source note: Kapil gets salary of ₹ 12,000 p.m. and is provided with rent-free unfurnished accommodation at Pune (population 20 lakh). House is owned by employer, fair rental value of which is ₹ 1,400 p.m. House was provided with effect from 1st July, 2014. Value of the perquisite of rent-free accommodation will be — (A) ₹ 21,600 (B) ₹ 10,800 (C) ₹ 16,200 (D) ₹ 12,600.

Topics: Income Tax Act, 1961

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