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Annexure
B 2
Prescribed
Rules for Valuation of certain Perquisites (rule 3 of
Income Ttax Rules 1962)
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Rent free Furnished
Residential Accomodation
the value of residential accommodation provided
by the employer during the previous year shall be
determined on the basis provided in the table below
:
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Where
the accommodation is provided by
the employer and
Where
the accommodation is owned by employer.
Where
accommodation is taken on lease or rent by the
employer.
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10%
of salary in cities having population exceeding
4 lacs;
7.5%
of salary in other cities,
in
respect of period when accommodation was occupied
by the employee, as reduced by the amount of rent,
if any, paid by employee.
Actual
amount of lease rental paid by employer or 10%
of salary, whichever is lower as reduced by the
rent, if any, actually paid by the employee.
The
value of perquisite, as determined in either of
the cases above, is increased by 10% p.a. of cost
of furniture (including television sets, radio
sets, refrigerators, other household appliances,
air conditioning plant or equipment or other similar
appliances or if furniture is hired from, hire
charges, as reduced by the amount, paid by employee.
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Where accommodation is provided by the employer
in the hotel (except where aggregate period of
stay does not exceed 15 days on his transfer from
one place to another).
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24%
of salary or actual charges to the hotel, whichever
is lower, for the period during which such accommodation
is provided as reduced by the rent, if any, paid
by employee.
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Where
on account of transfer from one place to another employee
is provided with accommodation at the new place of posting
while retaining accommodation at the other place, the
value of perquisite shall be determined for such accommodation
which has lower value, for a period of 90 days and thereafter
the value of perquisite shall be charged for both accommodations.
- Motor
Car
-
Car owned or hired by Employer
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Value
of Perquisite
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Charges
borne by
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Car
used partly for official and partly for private
purposes by employee.
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Car
used wholly for private purposes by employee.
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Car
used so for official purposes
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Expenses
are met or reimbursed by the employer.
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Where
cubic capacity of engine does not exceed 1.6 litres.
Rs. 1200 (+ Rs. 600, if chauffeur is also provided).
Where
cubic capacity of engineer exceeds 1.6 litres.
Rs. 1600 (+ Rs. 600, if chauffeur is also provided
).
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Expenditure
incurred by employer on running and maintenance
of car plus value of normal wear and tear or hire
charges plus remuneration paid to chauffeur.
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NILProvided
documents as specified in Note 1 below, are maintained
by employer.
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Expenses
are fully met by the employee.
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Where
cubic capacity of engine does not exceed 1.6 litres.
Rs 400 (+ Rs. 600, if chauffeur is also provided).
Where
cubic capacity of engine exceed 1.6 litres. Rs.
600 (+ Rs. 600 if chauffeur is also provided).
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Expenditure
incurred by employer for maintenance and running
of car plus value of normal wear and tear or hire
charges plus remuneration paid to chauffeur.
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NIL
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Basis
of Taxability
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Value
of Perquisite
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where
car expenses are met by employee
where
maintenance and running expenses are met by employer
-
if car is used wholly for official purposes
-
if car is partly used for official purposes and
partly for private purposes
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nil
nil provided the documents as specified in note
1 below are maintained by employer.
subject
to note 1 below, the actual expenditure incurred
by employer as reduced by rs. 1200/- / rs. 1600,
depending upon the cubic capacity of engines and
rs. 600/- for chauffeur, if also provided
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Where
one or more motor cars are owned or hired by the employer
and the employee or any member of his household are
allowed the use of such motor car or all or any of such
motor cars (otherwise than wholly and exclusively in
the performance of his duties), value of perquisite
shall be the amount calculated in respect of one car
as if the employee had been provided one motor car for
use partly in performance of his duties and partly for
private purpose and the amount calculated in respect
of other car, as if provided exclusively for private
purpose.
- Any
other Automative Conveyance Owned by Employee
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Basis
of Taxability
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Value
of Perquisite
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where
maintenance and running expenses are met or reimbursed
by employer
-if
used wholly for offical purpose
-
if partly used for official purposes and partly
for private purposes.
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nil provided the documents as specified in note
1 below are maintained by employer.
subject
to note 1 below, the actual expenditure incurred
by employer as reduced by an amount of rs. 600/-.
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