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Valuation
of Perquisites
To
be Published in the Ggazette of India Extraordinary
Part ii, Section 3, Sub-Section(ii) Dated
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
New Delhi, the 25th day of September, 2001.
NOTIFICATION
INCOME TAX
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S.O. 940(E) - In exercise of powers conferred by
section 295, read with clause (2) section 17 and
sub-section (2C) of section 192 of the Income-tax
Act, 1961 (43 of 1961), the Central Board of Direct
Taxes hereby makes the following rules further to
amend the Income-tax Rules, 1962, namely :-
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These rules may be called the Income-tax(22nd
Amendment) Rules, 2001.
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They shall be deemed to have come into force on
the 1st day of April 2001.
- In
the Income-tax Rules, 1962,
for rule 3, the following rule shall be substituted,
namely :-
Valuation of perquisites
For the purpose of computing the income chargeable under
the head “Salaries”, the value of perquisites provided
by the employer directly or indirectly to the assessee
(hereinafter referred to as employee) or to any member
of his household by reason of his employment shall be
determined in accordance with the following sub-rules,
namely: -
- 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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Sl.No.
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Circumstances
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Where
the accommodation is unfurnished
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Where
the accommodation is unfurnished
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| (1) |
Where
the accommodation is provided by Union or
State Government to their employees either holding
office or post in connection with the affairs of
Union or State or serving with any body or undertaking
under the control of such Government on deputation |
License
fee determined by Union or State Government in respect
of accommodation in accordance with the rules framed
by that government as reduced by the rent actually
paid by the employee. |
The
value of perquisite as determined under col. (3)
and increased by 10% per annum of the cost of furniture
(including television sets, radio sets, refrigerators,
other household appliances, air conditioning plant
or equipment) or if such furniture is hired from
a third party, the actual hire charges payable for
the same as reduced by any charges paid or payable
for the same by the employee during the previous
year. |
| (2) |
Where
the accommodation is provided by any other employer
and (a) where the accommodation is owned by the
employer or (b) where the accommodation is taken
on lease or rent by the employer. |
i)
10% of salary in cities having population exceeding
4 lacs as per 1991 census; ii) 7.5% of salary in
other cities, in respect of the period during which
the said accommodation was occupied by the employee
during the previous year as reduced by the rent
, if any, actually paid by the employee. Actual
amount of lease rental paid or payable by the employer
or 10% of salary whichever is lower as reduced by
the rent , if any, actually paid by the employee.
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The
value of perquisite as determined under col. (3)
and increased by 10% per annum of the cost of furniture
(including television sets, radio sets, refrigerators,
other household appliances, air conditioning plant
or equipment or other similar appliances or gadgets)
or if such furniture is hired from a third party,
by the actual hire charges payable for the same
as reduced by any charges paid or payable for the
same by the employee during the previous year. |
| (3) |
Where
the accommodation is provided by the employer specified
in Sl.No.(1) or (2) above in a hotel (except where
the employee is provided such accommodation for
a period not exceeding in aggregate 15 days on his
transfer from one place to another) |
Not
applicable |
24%
of salary paid or payable for the previous year
or the actual charges paid or payable to such hotel,
which is lower, for the period during which such
accommodation is provided as reduced by the rent,
if any, actually paid or payable by the employee.
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Provided
that nothing contained in this sub-rule would be applicable
to any accommodation located in a 'remote area' provided
to an employee working at a mining site or an onshore
oil exploration site, or a project execution site
or an accommodation provided in an offshore site of
similar nature:
Provided
further that where on account of his transfer from
one place to another, the employee is provided with
accommodation at the new place of posting while retaining
the accommodation at the other place, the value of
perquisite shall be determined with reference to only
one such accommodation which has the lower value with
reference to the Table above for a period not exceeding
90 days and thereafter the value of perquisite shall
be charged for both such accommodations in accordance
with the Table.
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