Rent-Free Accommodation: A Guide to Tax Implications
Rent-free accommodation (RFA) refers to lodging provided by an employer to an employee at no cost or at a reduced rate.
It includes various types of accommodation such as apartments, farmhouses, hotels, and ships.
Employees are categorized into central/state government and private sector for tax computation.
Furnished and unfurnished rent-free accommodations have different tax implications.
Taxability depends on factors like ownership of the property and city population.
Hotel accommodation provided by employers follows specific valuation guidelines.
Certain exemptions apply, such as for transfer accommodation and specific designations.
The definition of salary for tax purposes includes basic pay, allowances, and other monetary payments.