Rent free Furnished

Accommodation:
Where accommodation is owned by employer.


Where accommodation is taken on lease or rent by the employer.

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).

The value of accommodation in a remote area provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site or at offshore site will not be treated as perquisite A remote area means an area located at least 40 KM away from a town having a population not exceeding 20,000 . A project site means a site of project upto the stage of its commissioning. Off-shore site do not have to meet the requirement of distance.

In case accomodation is in cities having populationexceeding 4 lacs - 10% of Salary7.5% of Salary in other cities.

In respect of period for which accommodation was occupiedby 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% of cost of furniture (p.a.) (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment or other similar appliances) or if furniture is hired, the hire charges, as reduced by the amount, paid by employee.

24% of salary or actual charges to the hotel, whichever is lower, for the period during which such accommodation isprovided as reduced by the rent,if any, paid by employee.

Earlier Rules:
In case accommodation is in Delhi, Bombay, Calcutta & Madras (or in other cities):

1. If fair rent is less than 10% of salary, fair rent is taxable.
2. If fair rent is 10% of salary or more but not more than 60% ofsalary (50% in case of other cities), 10% of salary is taxable.
3. If fair rent exceeds 60% of salary, (50% in case of other cities),fair rent minus 50% of salary (40% in case of other cities) is taxable.

If any furniture is also provided by the company to the employee then either 10% of original cost of assets purchased or any hire charges paid for furniture, whichever is applicable, shallbe added to the cost of such accommodation.

Where accomodation is provided at concessional rent, the valuation will be made as if employee had been provided rent free accomodationand amount so computed will be reduced by rent payable by employee.

Where employer has provided sweeper, gardener, watchman,personal attendant, the actual cost to the employer shall be taxable as perquisite which is total amount of salary and allowances paid to them as reduced by amount paid by employee.

Earlier Rules:
a. When sweeper, watchman or gardener are recruited andremunerated by employer- Rs. 120 p.m. per person is taxable.However, if employed by employee and the amount paid to such persons is reimbursed by employer to employee, then the entireamount so reimbursed is taxable in the hands of employee.

b. Any other servants, entire amount spent on other servants is taxable.

Note: No value would be charged if loans are made available for medical treatment in respect of diseases specified in prescribed Rules and where loans are petty, not exceeding in the aggregate Rs. 20,000/-.

Earlier Rules:
Any such benefit given to employee is not taxable.

No perquisite where the value is upto Rs. 5,000/- in aggregate during the financial year.
However, gifts made in cash or convertible into cash, like gift cheques etc. will be taxable as perquisite.

Earlier Rules:
Not provided in the Earlier Rules. Should be taxable.

Earlier Rules:
If such benefit is used for official purposes, nothing would betaxable.

Where supply is made from resources owned by the employer without purchasing them from any other outside agency, manufacturing cost per unit incurred by employer. Where supply is made by purchasing from outside agency, amount paid to supplying agency is taxable less any amount paidby the employee.

Earlier Rules:
Where employer has supplied gas, electricity & water from own sources, not taxable

Where provided by purchasing from outside agency,any such benefit provided and used partly for official andprivate purposes will be taxable @ 6.25% of salary or the actualamount spent whichever is less.

If such benefit is used for private purposes, amount actuallyspent is taxable.

Earlier Rules:
Exempt where provision by any undertaking (employer) engaged incarriage of passengers or goods, to employeefor free or at concessional fare, where conveyance is owned bysuch undertaking.