For tax year 2026-27, a private-sector employer provides an employee with employer-owned, unfurnished…
The value is 10% of salary for the period during which the accommodation is occupied. Rule 15(2)(a), Table I, of the Income-tax Rules, 2026 prescribes this rate for…
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For tax year 2026-27, a private-sector employer provides an employee with employer-owned, unfurnished rent-free accommodation for the first time. The city has a population exceeding 40 lakhs as per the 2011 census. Under the ordinary valuation rule, the value for the period of occupation is:
Answer and explanation
Correct answer A
The value is 10% of salary for the period during which the accommodation is occupied. Rule 15(2)(a), Table I, of the Income-tax Rules, 2026 prescribes this rate for employer-owned unfurnished accommodation in cities with population exceeding 40 lakhs under the 2011 census. The 7.5% rate applies to the next lower population band, while 15% and 20% are not the applicable rate here.
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Gujarat SET (GSET)