Income Tax Rules: Good news has come from the Income Tax Department for salary earners. The Central Board of Direct Taxes (CBDT) has issued notifications regarding some changes in the rules related to rent-free homes.
After the implementation of the new rule, there will be an increase in the take home i.e. in hand salary of the employees.
Income Tax Rules: Now a new rule has come for the working people in the country. After its implementation, the inhand salary of the salaried class will increase. This relief news for the employed has come from the Income Tax Department . The Income Tax Department has changed the rules for rent-free accommodation given by the company to its employees. The Central Board of Direct Taxes (CBDT) has issued a notification in this matter.
This will increase the take home salary i.e. in hand salary of the employees. With this, employees will be able to save more. Changes in the rules related to Rent-Free Accommodation have come into effect from September 1.
Valuation will change
According to CBDT, employees, other than central or state government employees, who live in a company-owned house. There has now been a change in their valuation assessment. According to the new rule, where employees are given unfurnished accommodation by the company. The ownership of such accommodation is with the company itself.
Its valuation will now be different. Now in those urban areas whose population is more than 40 lakh as per 2011 census, then HRA will be 10 percent of the salary. Earlier it was equal to 15 percent of the salary in cities with a population of 25 lakh according to the 2001 census.
How will employees benefit?
This is how we understand it in simple language. Suppose an employee is living in a house provided by the company. The calculation for that will now be done under the new formula. The reason for this is that the rate has been reduced. This means that there will be less deduction from the total salary. Due to which the in hand salary of the employees will increase every month. Experts in this matter say that on one hand this will increase the salary of the employees. Their savings will increase. There will be a decrease in government revenue.
