Question:
Rent-Free Accommodation provided by an employer to an employee is:
Rent-Free Accommodation provided by an employer to an employee is:
Updated On: Dec 23, 2024
- Perquisite as per Section 17(2) of the Income Tax Act
- Perquisite as per Section 16(2) of the Income Tax Act
- Allowance under Section 10(13A) of the Income Tax Act
- Allowance under Section 10(1) of the Income Tax Act
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Rent-free accommodation provided by an employer to an employee is considered a perquisite under Section 17(2) of the Income Tax Act. Perquisites are benefits or amenities provided to employees in addition to their salary, and they are included in the employee’s taxable income.
Was this answer helpful?
0
0
Top Questions on Tax Law
- What is the condition prescribed under Section 6 of the Income Tax Act, 1961 for an individual to be classified as a ‘Resident’ in India for tax purposes?
- Under which provision of the Income Tax Act, 1961 is the scope of the resident’s ‘total income’ covered?
- In the present case, the levy of IGST on the supply of ocean freight services under the reverse charge mechanism on the importer, when the value of such service is already included in the transaction value of imported goods, amounts to double taxation. The concept of double taxation implies that the same subject matter is taxed twice when it should be taxed only once. The GST law, as framed, does not envisage taxation of a transaction twice, and the fundamental principles of GST do not support such an imposition. Further, the importer, who is not the recipient of the service but is treated as a deemed recipient under the reverse charge mechanism, cannot be made liable to pay tax on a service that they have not directly availed. This stretches the scope of reverse charge mechanism beyond its intended purpose, which is to simplify tax collection by shifting the liability to pay tax from the service provider to the service recipient, particularly in cases where the service provider is located outside India and does not have a presence within the taxable territory. Moreover, the constitutional framework requires that a tax should be levied with legislative competence and should not contravene any fundamental rights guaranteed under the Constitution. The imposition of IGST on ocean freight under the reverse charge mechanism without proper legislative backing undermines the very essence of taxation principles enshrined in the Constitution of India.
(This extract is taken from Mohit Minerals v. Union of India CA No. 1390/2022) - Read the given statements and choose the correct option:
Statement 1: Agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, 1961.
Statement 2: Tax on Non-Agricultural Income in case of exceeding ₹5000/- is determined by the Scheme of Partial Integration of Non-Agricultural Income with Agricultural Income. - The term "Income" is described in the Income Tax Act, 1961, under which section?
View More Questions
Questions Asked in AIBE exam
- Which section of BSA provides that no court shall require any communication between the Ministers and the President of India to be produced before it?
- AIBE - 2024
- Law of Evidence
- What is the duration of copyright protection for literary works in India?
- AIBE - 2024
- Intellectual Property Law
- Which of the following is not a mode of acquisition of property?
- AIBE - 2024
- Criminal Law
- Which of the following is not a remedy available to a consumer under the Consumer Protection Act, 2019?
- AIBE - 2024
- Specific Relief Act
- According to the Land Acquisition Act (Land Acquisition, Rehabilitation and Resettlement), 2013, governments can acquire land for
(1) Strategic purpose.
(2) Projects for Families Affected by Projects.
(3) For public-private partnership projects, where government ownership of land will remain with the government.- AIBE - 2024
- Property Law
View More Questions