TaxTMI 
TaxTMI 
Whether rent free accomodation provided by employer is taxable perquisite if the employee could not actully occupied it.
Taxability of rent free accomodation provided
19 Jan 2010 
2 Replies 
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Taxability of rent-free accommodation: allocation and acceptance generally create taxable perquisite unless employee proves non-provision.
Where an employer allocates and the employee accepts rent free accommodation, the benefit is a perquisite and is ordinarily taxable even if the employee does not occupy it; tax may be avoided only by proving the accommodation was not provided or that non occupancy arose from employment related constraints preventing availment. (AI Summary)
Where an employer allocates and the employee accepts rent free accommodation, the benefit is a perquisite and is ordinarily taxable even if the employee does not occupy it; tax may be avoided only by proving the accommodation was not provided or that non occupancy arose from employment related constraints preventing availment. (AI Summary)