Rule 3(a)(i) of Income-tax Rules - Valuation of perquisite represented by rent-free residential accommodation in the case of Government employees - Effect of amendments made by Income-tax (Third Amendment) Rules, 1974

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f perquisite represented by rent-free residential accommodation in the case of Government employees - Effect of amendments made by Income-tax (Third Amendment) Rules, 1974 1. The Income-tax (Third Amendment) Rules, 1974, notified by the Central Board of Direct Taxes on 21-9-1974, have substituted sub-clause (i) of clause (a) of rule 3 of the Income-tax Rules, relating to valuation of the perqui....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erson in accordance with the rules framed by the Government for allotment of residences to its officers.  Under the new provision, the perquisite value of rent-free residential accommodation in such cases will be determined as follows : 1. If the accommodation is unfurnished, the perquisite value of the accommodation will be determined on the same basis as adopted hitherto.  The perqu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ges payable by the employer. The effect of the new provision is that the perquisite value of free furniture (including television sets, radio sets, refrigerators, other household appliances and air-conditioning plant and equipment) provided to all categories of salaried taxpayers will be taken to be 15 per cent^1 of the original cost of such furniture or, where the furniture is hired, the hire ....