Income Tax Department new rules for these Tax payer

The income Tax (IT) department has dropped the tax for workers serving company- handed rent-free homes. Furnishing major relief to the taxpayers in this order, the new rule comes into effect from moment, September 1, 2023.

It has lowered the tax for workers staying in similar home. The new rule comes into effect from moment, September 1, 2023. The ITD has said that the new rules are being introduced to give relief to workers who are staying in company- handed rent-free homes.

The ITD has also said that the new rules will be salutary for companies as they will save on the levies that they’ve to pay on the rent-free accommodation handed to their workers. The new rules are applicable to all workers who are staying in company- handed rent-free homes, irrespective of their payment.

Still, there are certain exceptions to the new rules. For illustration, the new rules don’t apply to workers who are staying in company- handed rent-free homes that are located in remote areas.

Income duty rules for company- handed rent-free homes:

1) 10 percent of payment in metropolises having a population exceeding 40 lakh as per the 2011 tale.

2)7.5 percent of payment in metropolises having a population exceeding 15 lakh but not exceeding 40 lakh as per the 2011 census.

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As per the announcement, where unfurnished accommodation is handed to workers other than the central or state government workers and similar accommodation is possessed by the employer also the valuation shall be 10 per cent of payment( reduced from 15 per cent) in metropolises having population exceeding 40 lakh as per 2011 census ( before, 25 lakh as per 2001 census), 7.5 per cent of payment( reduced from 10 per cent) in metropolises having population exceeding 15 lakh but not exceeding 40 lakh as per 2011 census (before, 10 lakhs but not exceeding 25 lakhs as per 2001 census).