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[Section 3]
[Entire Act]
Union of India - Subsection
Section 3(1) in Income Tax Rules, 1962
| Sl. No. | Circumstances | Where accommodation is unfurnished | Where accommodation is furnished |
| (1) | (2) | (3) | (4) |
| (1) | Where the accommodation is provided by theCentral Government or any State Government to the employeeseither holding office or post in connection with the affairs ofthe Union or of such State. | License fee determined by the Central Governmentor any State Government in respect of accommodation in accordancewith the rules framed by such Government as reduced by the rentactually paid by the employee. | The value of perquisite as determined undercolumn (3) and increased by 10% per annum of the cost offurniture (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 hirecharges payable for the same as reduced by any charges paid orpayable 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 | (i) 15% of salary in cities havingpopulation exceeding 25 lakhs as per 2001 census;(ii) 10% of salary in cities havingpopulation exceeding 10 lakhs but not exceeding 25 lakhs as per2001 census;(iii) 7.5% of salary in other areas, in respect of the periodduring which the said accommodation was occupied by the employeeduring the previous year as reduced by the rent, if any, actuallypaid by the employee. | The value of perquisite as determined under column (3) andincreased by 10% per annum of the cost of furniture (includingtelevision sets, radio sets, refrigerators, other householdappliances, air-conditioning plant or equipment or other similarappliances or gadgets) or if such furniture is hired from a thirdparty, by the actual hire charges payable for the same as reducedby any charges paid or payable for the same by the employeeduring the previous year. | |
| (b) where the accommodation is taken on lease or rent by theemployer. | Actual amount of lease rental paid or payable by the employeror 15% of salary whichever is lower as reduced by the rent, ifany, actually paid by the employee. | The value of perquisite as determined under column (3) andincreased by 10% per annum of the cost of furniture (includingtelevision sets, radio sets, refrigerators, other householdappliances, air-conditioning plant or equipment or other similarappliances or gadgets) or if such furniture is hired from a thirdparty, by the actual hire charges payable for the same as reducedby any charges paid or payable for the same by the employeeduring the previous year. | |
| (3) | Where the accommodation is provided by the employer specifiedin serial number (1) or (2) in a hotel (except where the employeeis provided such accommodation for a period not exceeding inaggregate fifteen days on his transfer from one place toanother). | Not applicable | 24% of salary paid or payable for the previous year or theactual charges paid or payable to such hotel, which is lower, forthe period during which such accommodation is provided as reducedby the rent, if any, actually paid or payable by the employee: |