Accomodation - seggragation

[CHITRA HARIHARAN]

As perSec 192(1A) of the Income Tax Act, 1961, the employer at his option can pay average tax(read with sec10(10cc) while calcualting the non monetary taxable perquiste in the hands of the employee. The question arises whether the employer can seggragate while calculating the average tax to be paid by them between(1) self leased accomadation( house taken on lease from the employee itself) and (2)third party lease(house taken on lease from a any other person other than the employee) & house owned by the employee. In this case, the employer has given the benefit of TAX PAYMENT only the (2) mentioned above and not for the employees covered under(1) above. Whether the treatment by the employer is correct according to rule 3 which deals with calculation of perquistes?

AI Summary

Employer Must Calculate TDS Uniformly for All Lease Types Under Section 192(1A) and Rule 3 of Income Tax Act. An individual raised a query regarding the calculation of taxable perquisites under Section 192(1A) of the Income Tax Act, 1961. The issue concerns whether an employer can segregate tax calculations between self-leased accommodations and third-party leases or employee-owned houses. The employer provided tax payment benefits only for third-party leases and not for self-leased accommodations. The response indicated that TDS liability should be calculated uniformly under Rule 3, without segregation based on the type of lease.