Perquisites - Services of sweeper, gardner, watchmen or personal attendant - (New) 15(4) / (Old) Rule 3(3)

Perquisites from domestic servant services are taxable on employer-paid salary, reduced by any employee recovery.

The value of perquisites for domestic servant services such as a sweeper, gardener, watchman or personal attendant is taxable as a benefit provided by the employer to the employee or household member. The taxable value is the total salary paid or payable by the employer for such services, less any amount recovered from the employee. Under the earlier rule, the perquisite was valued at the actual cost to the employer, and a domestic servant allowance is fully chargeable to tax.