Income-Tax (Thirteenth Amendment) Rules, 2009 - Rule 3 regarding Valuation of perquisites Substituted and Rule 40F inserted - 94/2009 - Income Tax

Valuation of perquisites revised; governs employer provided benefits valuation and fair market value for employee stock options.

Determination of the value of perquisites for salaried taxpayers is restated by substituted Rule 3, prescribing valuation methods for residential accommodation, motor car use, domestic services, utilities, education, travel, food, gifts, credit card and club expenses, use or transfer of movable assets, and other amenities. Valuations use prescribed percentages of salary, actual employer expenditure, fixed monthly amounts, cost to the employer, or fair market value for securities, reduced by amounts paid or recovered from the employee. Documentary and certification conditions permit attribution of higher official-use reductions. The rule has a stated effective date and Rule 40F limits application for later assessment years.