Under the Income-tax Rules, 2026, what percentage of salary is used to value rent-free, unfurnished…
The applicable percentage is 7.5% of salary for an employer-owned unfurnished residence in a city with a 2011-census population exceeding 15 lakh but not exceeding 40 lakh.…
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Under the Income-tax Rules, 2026, what percentage of salary is used to value rent-free, unfurnished accommodation owned by a non-government employer in a city whose population exceeds 15 lakh but does not exceed 40 lakh under the 2011 census? Assume this is the first tax year in which the accommodation is provided to the employee.
Answer and explanation
Correct answer A
The applicable percentage is 7.5% of salary for an employer-owned unfurnished residence in a city with a 2011-census population exceeding 15 lakh but not exceeding 40 lakh. Rule 15 of the Income-tax Rules, 2026 applies this rate for the period of occupation; the 10% rate applies to cities exceeding 40 lakh.
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Gujarat SET (GSET)