Ready ReferencePerquisite valuation

Where the accommodation is provided by the Central Government or any State Government, to the employees either holding office or post in connection with the affairs of the Union or of such State.

License fee determined by the Central Government or any State Government 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).

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; (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 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).

(b) where the accommodation is taken on lease or rent by the employer.

Actual amount of lease rental paid or payable by the employer or 10% of salary, in respect of the period during which the said accommodation was occupied by the employee during the tax year, whichever is lower, 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).

Where the accommodation is provided by the employer specified in serial number (1) or (2) in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on his transfer from one place to another).

Not applicable.

Actual charges paid or payable to such hotel or 24% of salary paid or payable for the tax year for the period during which such accommodation is provided, whichever is lower, as reduced by the rent, if any, actually paid or payable by the employee.

Where the motor car is owned or hired by the employer and— (a) is used wholly and exclusively in the performance of his official duties;

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) is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer;

actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant tax year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use.

actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant tax year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by an amount charged from the employee for such use.

(c) is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and— (i) the expenses on maintenance and running are met or reimbursed by the employer;

₹ 5000 (plus ₹3000, if chauffeur is also provided to run the motor car by the employer)

₹ 7000 (plus ₹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;

₹ 2000 (plus ₹ 3000, if chauffeur is also provided by the employer to run the motor car by the employer).

₹ 3000 (plus ₹3000, if chauffeur is also provided to run the motor car by the employer).

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 reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee or any member of his household.

the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above, if the conditions mentioned in sub-rule (3)(c) are fulfilled.

the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above, if the conditions mentioned in sub-rule (3)(c) are fulfilled.

Where the employee owns any other automotive conveyance but the actual running and maintenance charges 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 (2)(c) are maintained by the employer

not applicable;

(b) such reimbursement is for the use of vehicle partly for official purposes and partly for personal or private purposes of the employee.

the actual amount of expenditure incurred by the employer as reduced by the amount of ₹3000 if the conditions mentioned in sub-rule (3)(c) are fulfilled.

Not applicable.

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.

(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 supplying the gas, electric energy or water, as reduced by any amount paid by the employee in respect of such services.

(b) Supply of gas, electric energy or water for the consumption of the employee's household made from resources owned by the employer, without purchasing them from any outside agency.

The amount of the manufacturing cost per unit incurred by the employer, as reduced by any amount paid by the employee in respect of such services.

3. (a) Provision of free or concessional educational facilities for any member of the employee's household.

The amount of expenditure incurred by the employer in this regard, as reduced by any amount paid or recovered from the employee on that account.

(b) Provision of free or concessional educational facilities for any member of employee household, where the educational institution is itself maintained and owned by the employer.

Cost of such education in a similar institution in or near the locality, as reduced by any amount paid or recovered from the employee on that account, where the cost of such education or value of such benefit per child exceeds ₹3,000 per month.

(c) Provision of free educational facilities for any member of employees' household in any other educational institution by reason of his employment.

Cost of such education in a similar institution in or near the locality, as reduced by any amount paid or recovered from the employee on that account, where the cost of such education or value of such benefit per child exceeds ₹3,000 per month.

4. Provision by an employer who is engaged in the carriage of passengers or goods, to any employee (not being an employee of an airline or the railways) or to any member of his household, for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods.

Value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity.

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 ₹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 reimbursed to the employee under any medical insurance scheme.

The value of travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 277.

It shall be the sum equal to the amount of the expenditure incurred by such employer in that behalf.

(a) Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public; or (b) where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall be an amenity; or (c) where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the expenses incurred in relation to such extended period of stay or vacation as reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity.

The value of free food and non-alcoholic beverages provided by the employer to an employee.

It shall be the amount of expenditure incurred by such employer as reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity.

This provision shall not apply to— (a) free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers usable only at eating joints, to the extent the value thereof in either case does not exceed ₹200 per meal; or (b) tea or snacks provided during working hours; or (c) free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.

The value of any gift, or voucher, or token (in lieu of gift) received by the employee or by member of his household) on ceremonial occasions or otherwise from the employer.

It shall be the sum equal to the amount of such gift.

It shall be 'nil', if the value of such gift, voucher or token, as the case may be, is below ₹15,000 in aggregate during the tax year.

The amount of expenses including membership fees and annual fees incurred by the employee or any member of his 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.

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 initial fee paid for acquiring such corporate membership; and (b) the provision given in column C of Sl. No. 6 shall not apply, if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled:– (i) conditions in sub-rule (5)(b) are fulfilled; and (ii) use of health club, sports and similar facilities are provided uniformly to all employees by the employer.

The value of benefit to the employee resulting from the use by the employee or any member of his household of any movable asset (other than assets already specified in this rule and other than laptops, computers, tablets and mobile phones) belonging to the employer or hired by him.

It shall be determined at 10% per annum of the actual cost of such asset or the amount of rent or charge paid or payable by the employer, as the case may be, as reduced by the amount, if any, paid or recovered from the employee for such use.

Nil.

The value of benefit to the employee arising from the transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his household.

It shall be determined to be the amount representing the actual cost of such assets to the employer as reduced by the cost of normal wear and tear and as further reduced by the amount, if any, paid or recovered from the employee being the consideration for such transfer.

The cost of normal wear and tear shall be calculated at the rate of— (a) 50% in case of computers and electronic items, by reducing balance method; (b) 20% in the case of motor cars, by reducing balance method; and (c) 10% in case of other assets, of the cost of the asset for each completed year during which such asset was put to use by the employer.

The value of any other benefit or amenity, service, right or privilege provided by the employer, except expenses on telephones, including a mobile phone.

It shall be determined on the basis of cost to the employer under an arm's length transaction as reduced by the employee's contribution, if any.

Nil.