Tuesday, November 8, 2011

Rent free accomodation, rent paid in salary slip. Whether taxable?

I am entitled for rent free accomodation. However, since the government accomodation is not available, I am staying at private premises at the monthly rent of Rs.2000/- and the said rent amount is paid by government in my salary. I used to pay the entire rent amount to the owner of the rented premises occupied by me. I have received Rs.24000/- as rent from government in my salary slip and entire amount is paid by obtaining rent receipt from the owner of the premises. Whether the said amount of Rs.24000/- which I have received from the government and paid to the owner, is taxable? More particularly when I am entitled for rent free accomodation

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