CBDT Amends Valuation Rules for Accommodation Perquisite, Effective September 1, 2023
The Central Board of Direct Taxes (CBDT) has introduced amendments to the valuation of perquisites for accommodation provided by employers. These amendments are effective from September 1, 2023.
Key changes:
- Change in perquisite rates and city categorization: The amendment changes the categorization and limits of cities and populations, along with revised perquisite rates based on the 2011 census, compared to the 2001 census used previously.
- Introduction of Cost Inflation Index (CII): Where the employee continues to occupy the same accommodation (provided by the employer) for more than one year, the perquisite valuation for the subsequent years will be capped to an extent by the introduction of the Cost Inflation Index (CII).
- Change in plinth area and definition of remote work: Temporary accommodation provided to employees at select sites will not be taxable as a perquisite, if the following conditions are satisfied:
- The accommodation has a plinth area not exceeding 1,000 square feet (increased from 800 square feet previously) and is located not less than eight kilometers away from the local limits of any municipality or cantonment board; or
- The accommodation is located in a remote area.
Remote area is defined as any area other than an area which is located within the local limits of, or within a distance of 30 km (down from 40 km previously) from the local limits of, any municipality or a cantonment board having a population of one lakh (increased from 20,000 previously) or more, based on the 2011 census.
Related News
- 14 Sep
Roshi Jain steps into Prashant Jain’s shoes at HDFC AMC
Roshi Jain has taken over the reins of HDFC Flexi Cap Fund, one of the largest equity-oriented schemes in India. She has made some subtle changes to the portfolio, such as reducing exposure to the energy and consumer staples sector and increasing allocations to the IT and pharmaceutical sectors. She is confident that she can continue the success of the fund under her leadership.
- 13 Sep
Nifty 50 hits 20,000: Underweight stocks that delivered big gains
The Nifty 50 index crossed 20,000 on Sep 11, 2023. Half of the stocks in the index doubled in 3 years. Stocks with significant weight grew notably, but some underweight stocks gained significantly too. Top 10 underweight stocks with highest returns: Tata Motors (+340%), Apollo (+216%), JSW Steel (+186%), Hindalco (+171%), NTPC (+170%), Grasim (+158%), Adani Ports (+157%), ONGC (+150%), IndusInd Bank (+138%). Past performance is not a guarantee of future results.
- 12 Sep
Retail participation in the stock market is decreasing, but overall market traded volume is increasing.
Retail participation in Indian stock market decreases, but overall traded volume increases. Investors should focus on long-term investing and do their research. Here are the key points from the article: Retail participation in cash/spot segment decreases from 45% to 36.5%. This is likely due to COVID-19, market volatility, and proprietary trading. Overall market traded volume increases. Investors should focus on long-term investing and do their research.
- 11 Sep
Sovereign Gold Bond Scheme 2023-2024 Series II: All you need to know
The Reserve Bank of India (RBI) has announced the launch of the Sovereign Gold Bond Scheme 2023-2024 Series II. The price of the bond has been fixed at Rs 5,923 per gram of gold. Investors making payment through digital means will get an additional discount of Rs 50 per gram. The bonds are open to all investors and offer an interest rate of 2.5% per annum. The capital gains are tax-free if the bonds are held till maturity.
- 11 Sep
SEBI’s move to allow 6 new ESG fund categories may confuse investors
SEBI has allowed asset management companies to launch up to 6 new ESG fund categories. These funds will invest in companies that are considered to be environmentally and socially responsible. However, some experts believe that this may confuse investors, who are already overwhelmed with the multitude of fund categories and schemes that are available. Investors should carefully consider their investment goals, risk appetite, and time horizon before investing in any ESG fund.
Leave a Reply