1. Your Queries: Gift of computer by company for personal use is taxable as perk

Your Queries: Gift of computer by company for personal use is taxable as perk

I have paid rent to two landlords of amounts below `1 lakh. Do I still need to submit the PAN details of both my landlords? —Sanjay Kumar

By: | New Delhi | Published: May 24, 2017 3:46 AM
taxable, information technology, taxation, Income Tax Act, CS Naren The gift of computer by the company for personal use is a taxable perquisite in your hands. (PTI)

Gift of computer by company for personal use is taxable as perk. I am an employee working in an information technology company. I have been given a computer by the company for my personal use. What is the taxation on me under Income Tax Act of such gift? — CS Naren

The gift of computer by the company for personal use is a taxable perquisite in your hands. In such cases, the value of benefit arising to you from the transfer of computer shall be determined to be the amount representing the actual cost of computer to the employer as reduced by the cost of normal wear and tear calculated at the rate of 50% of such cost for each completed year during which such asset was put to use by the employer (if it is a second hand computer) and as further reduced by the amount, if any, paid or recovered from you being the consideration for such transfer.

I am a non-resident Indian working in the UAE for the last two years for a multi-national company. I have a resident demat account with my bank in India and I want to continue to hold the same. Can I hold the demat account? —Varun Kumar

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Under the Foreign Exchange Management Act, 1999 (also referred to as FEMA), a person resident in India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India. Accordingly, you can continue to hold the securities acquired when you were a resident in India. However, as you are currently a non-resident under the provisions of FEMA, it would be advisable that you intimate your Depository Participant (DP) of such change of residential status. Generally, the bankers require that the existing demat account is to be closed & the shares needs to be transferred to a new NRO demat account.

I have paid rent to two landlords of amounts below `1 lakh. Do I still  need to submit the PAN details of both my landlords? —Sanjay Kumar

As per the income tax provisions, Permanent Account Number (PAN) of the landlord is required to be furnished if the aggregate of the rent paid during the previous year exceeds `1 lakh. As such, since in your case the total rent paid per landlord does not exceed the limit of `1 lakh, PAN details of any of the landlords may not be required to be furnished in order to claim the HRA exemption.

-The writer is founder of RSM Astute Consulting Group. Send your queries to fepersonalfinance@expressindia.com

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