https://www.taxtmi.com/caselaws?id=29259 Section 17(2) treats concessional rent as a perquisite only where the employee in fact receives a rent concession, which depends on the normal rent of the accommodation and the rent actually paid. Rule 3 of the Income-tax Rules, 1962 is only a valuation provision applied after a perquisite is otherwise established; it does not create a deeming fiction that every case where rent is below 10 per cent of salary is automatically a perquisite. The commentary states that treating the entire difference between actual rent and 10 per cent of salary as a perquisite would exceed the rule-making power under Section 295(2)(c) of the Income-tax Act, 1961. en-us Wed, 29 Oct 1980 00:00:00 +0530 Thu, 11 Mar 2010 17:04:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29259 Section 17(2) treats concessional rent as a perquisite only where the employee in fact receives a rent concession, which depends on the normal rent of the accommodation and the rent actually paid. Rule 3 of the Income-tax Rules, 1962 is only a valuation provision applied after a perquisite is otherwise established; it does not create a deeming fiction that every case where rent is below 10 per cent of salary is automatically a perquisite. The commentary states that treating the entire difference between actual rent and 10 per cent of salary as a perquisite would exceed the rule-making power under Section 295(2)(c) of the Income-tax Act, 1961. Case-Laws Income Tax Wed, 29 Oct 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29259