Rent-free accommodation perquisite rules set out salary-based valuation, hotel exemptions, and special non-taxable accommodation categories.

Valuation of rent-free accommodation as a perquisite depends on whether the employer is a Government employer or other employer, and whether the accommodation is unfurnished, furnished, leased, rented, or in a hotel. Government accommodation is valued by reducing the employee's actual rent from the licence fee, while furnished accommodation adds a furniture component. For other employers, the perquisite value is linked to salary and city population, with different percentage bands, and hotel accommodation is exempt up to 15 days on transfer.

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