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
- Compute your salary
- 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.