Taxable perquisite treatment for employer-provided gas, electricity and water benefits under salary income rules. Employer-provided household gas, electricity or water is a taxable perquisite in salary income. If the supply is obtained from an outside agency, the taxable value is the employer's payment to the agency less any amount recovered from the employee. If supplied from the employer's own resources, the taxable value is the cost of production or manufacturing cost per unit less the employee's contribution. A utility allowance is fully taxable, and expenses paid by the employer for connections in the employee's name are taxable as discharge of the employee's obligation.