Income Tax: Changes in the rules of Income Tax, employees should know the update of your work..

If you are an employee and you have got free accommodation from the company, then now you will be able to save more tax and take home more salary than before. Recently, the rules related to free accommodation given to employees by the Income Tax Department have been changed.

These rules have come into force from September 1. Notification has already been issued by the Central Board of Direct Taxes (CBDT) regarding this.

What happened to the rules?
The notification said that apart from the central and state governments, free accommodation provided to employees by private companies would be valued in two ways. First - According to the 2011 census, if the employee has a house in a city with a population of more than 40 lakhs, then its value will be 10 percent of the salary, which was earlier 15 percent. Second - According to the 2011 census, if the employee has a house in a city with a population of more than 15 lakh and up to 40 lakh, then its value will be 7.5 percent of the salary, which was earlier 10 percent.

How will the employees benefit?
Its direct benefit will be given to those employees who have got houses from their employers. Due to the lower value of the house than before, the employees will have more money left than before and they will take home more salary.

Those employees will get more benefits from this, and are given expensive houses by the companies. However, those employees who have been given normal houses will also benefit from this.
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