| I am a PSU employee and have been allotted a house by my employer, for which they calculate 15 per cent of the gross total income as accommodation perquisite for fringe benefit tax purpose. However, such perquisite is calculated at much lower rate for employees with better accommodation. Is this process correct? |
K. C. Busty, Rourkela |
|
| |
| ge benefit tax has not been imposed on accommodation perquisite. However, the taxability for such perquisite in the hands of employees has been increased. Till last year, the perquisite value was taken as 10 per cent of employee's salary (for accommodation in cities with a population of more than 4 lakh) and 7.5 per cent (for population lesser than 4 lakh). From the current year, the valuation has been increased to 20 per cent and 10 per cent, respectively. |
| |
|
| |
|
| |
| Bond-wagon |
| I had invested in non-taxable RBI bonds in 2003. With the removal of tax exemption on interest from the current financial year, shall I have to pay tax on further interest till maturity? |
S. Datta Gupta, Calcutta |
|
| |
| The interest on these bonds continues to be tax-free till maturity. |
|
| |
|
| |
| Sixth sense |
| I am 65 years of age. Though my income was less than Rs 72,000, I used to file income tax returns till assessment year 2004-05. Is it necessary for me to continue filing returns? I own a credit card. |
R. Narayanan, Calcutta |
|
| |
| Though you are exempt from filing returns according to the income criteria, you have to file a return under the ‘one-by-six’ scheme, as you still own a credit card. |
|
| |
|
| |
| Charity call |
| Will my contribution to Prime Minister's National Relief Fund be allowed as deduction from income? |
J. C. Chaudhury, Calcutta |
|
| |
| Yes, 100 per cent contribution to the fund is allowed as deduction from total income. |
|
| |
| |
| If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |
