Company Leased Accommodation

Company Leased Accommodation (CLA) is a perquisite provided to employees. It can either be free of cost or at concessional rent. CLA is taxed as per income tax rules.

PERQUISITE VALUE OF HOUSE

Steps

  1. Compute your salary

  1. Is the house owned by the company or it is rented.

Owned

If the house is owned, the perquisite value of the house would be as per the city population.

Rented

If the house is rented, the perquisite value of the house would be as below:

THE PERQUISITE VALUE OF HOUSE IS NOW CALCULATED

PERQUISITE VALUE OF HOUSE FURNISHINGS

1.Is the house furnished.

Furnished House means the company has provided you Air Conditioner (AC), Refrigerator, Television (TV) or any other household appliances.

If the house is furnished, then is the furnishings either owned by employer or it is rented.

Owned Furnishings

Perquisite value of furnishings is 10% of the original cost of the furniture  .

Rented Furnishings

The actual furniture rental charges paid by the employer

EXAMPLES

Consider the below salary structure

Example 1

House is owned by company/employer and furniture cost is Rs. 20,000.

Population of City is 40 lakhs

The company also charges a nominal rent from the employee @ Rs. 1500 per month.

Example 2

House is owned by company/employer and furniture cost is Rs. 30,000.

Population of City is 20 lakhs

Company also charges a rent from the employee @ Rs. 1000 per month.

Example 3

House is rented. The company pays Rs. 40,000 per annum as rent.

House is furnished and company is paying Rs 22,000 per annum as rent.

Company also charges a rent from the employee @ Rs. 1000 per month.