TaxTMI 
TaxTMI 
Valuation of perquisites
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....vernment in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee. Value of perquisite is determined as per the provisions of sub-rule (2)(e). (2) Where the accommodation is provided by any other employer and- (a) where the accommodation is owned by the employer; or (i) 10% of salary in cities having population exceeding forty lakhs as per 2011 census in respect of the period during which the said accommodation was occupied by the employee during the tax year as reduced by the rent, if any, actually paid by the employee; Value of perquisite is determined as per the provisions of sub-rule (2)(e). (ii) 7.5% of salary in cities having population exceeding fifteen lakhs but not exceeding forty lakhs as per 2011 census in respect of the period during which the said accommodation was occupied by the employee during the tax year as reduced by the rent, if any, actually paid by the employee; and (iii) 5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the tax year as reduce....
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....ndex for the tax year for which the amount is calculated and the Cost Inflation Index for the tax year in which the accommodation was initially provided to the employee. (e) For the purposes of this sub-rule, where the accommodation is furnished;- (i) the value of perquisite as determined under Table I: Sl. Nos. 1 and 2. C be increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment), as reduced by any charges paid or payable for the same by the employee during the tax year; and (ii) if such furniture is hired from a third party, the value of perquisite would be the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the tax year. (f) For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee, who is serving on deputation with any body or undertaking under the control of such Government,- (i) the employer of such an employee shall be deemed to be that body or undertaking where the employee is serv....
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....r any member of his household and- (i) The expenses on maintenance and running are met or reimbursed by the employer; Rs. 5000 (plus Rs.3000, if chauffeur is also provided to run the motor car by the employer) Rs. 7000 (plus Rs.3000, if chauffeur is also provided to run the motor car by the employer); (ii) the expenses on running and maintenance for private or personal use are fully met by the assessee; Rs. 2000 (plus Rs. 3000, if chauffeur is also provided by the employer to run the motor car by the employer). Rs. 3000 (plus Rs.3000, if chauffeur is also provided to run the motor car by the employer). (2) Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and- (a) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes; no value, if the documents specified in sub-rule (3)(c) are maintained by the employer no value, if the documents specified in sub-rule (3)(c) are maintained by the employer; (b) such reimbu....
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....f expenditure incurred thereon; and (ii) the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties. (d) For the purposes of this sub-rule, the normal wear and tear of a motor car shall be taken at 10% per annum of the actual cost of the motor car or cars. (4) The value of benefit provided by the employer to the employee or any member of his household for goods, services or utilities, as referred to in column B of the following Table III, shall be computed in accordance with column C thereof: Table III Sl.No. Nature of goods, services or utilities Value of benefit of the goods, services or utilities provided A B C 1. Services of a sweeper, a gardener, a watchman or a personal attendant. The total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services. 2. (a) Supply of gas, electric energy or water for the consumption of the employee's household by purchasing them from any outside agency. The amount paid by the employer to the agency suppl....
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....ons provided in Column D thereof: Table IV Sl.No. Nature of other benefits or amenities Value of perquisite Conditions A B C D 1. Benefit from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant tax year by the employer or any person on his behalf. It shall be the sum equal to the interest computed at the annual rate charged by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant tax year in respect of loans by the bank for the same purpose, using the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household. (a) No value would be charged if such loans are made available for medical treatment in respect of diseases specified in rule 18 or where the amount of loans is not exceeding Rs.2,00,000 in the aggregate; and (b) where the benefit relates to the loans made available for medical treatment referred to in clause (a), the exemption so provided shall not apply to so much of the loan as has been reim....
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....household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer. It shall be the amount taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity. There shall be no value of such benefit, where expenses are incurred wholly and exclusively for official purposes and the conditions specified in sub-rule (5)(b) are fulfilled. 6. The value of benefit to the employee resulting from the payment or reimbursement by the employer of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by a member of his household. It shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account and the amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity. (a) Where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the ....
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.... which may, inter alia, include the date of expenditure and the nature of expenditure; (ii) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties. (6) For the purposes of section 17(1)(d), the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined as follows:- (a) in a case where, on the date of the exercising of the option, the share in the company is listed on a recognised stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange, subject to the provisions of clause (b); (b) in a case where, on the date of exercising of the option, the share is listed on more than one recognised stock exchanges, the fair market value shall be the average of the opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share; (c) in a case where, on the date of exercisi....