Rule 3(g) of Income-tax Rules - Valuation of perquisite on account of services of household servants

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dated 10-12-1969 (Annex) provides that the taxable perquisite in the hands of the employee on account of the services of gardeners, night watchmen and sweepers provided by the employer should be calculated on the following ad hoc basis :—    (i)  Sweeper - 75 per cent of actual wages or Rs. 60 p.m., whichever is less;   (ii)  Gardener; and (iii)  Watchman -....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion No. 133 [F. No. 40/25/69-IT(A-I)], dated 10-12-1969 (Annex)  on the above subject. 2. The Board in consultation with the Ministry of Law has re-examined the question of taxability of the salaries paid to the gardeners of the buildings belonging to the employers and occupied by the employees as a perquisite.  Section 17(2)(iv) provides that the term "perquisite" includes "any sum ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and the grounds which the employer in any case would have done irrespective of the fact whether the building was occupied or vacant.  As such, the amount spent on the salary of a gardener by the employer does not represent a sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the employee.  The payment of salary to a gardener as s....