(a) Union or State Government Employees - The value of perquisite is the license fee as determined by the Central or the State Government as reduced by the rent actually paid by the employee.
(b) Non-Govt. Employees-
- (a) Where the accommodation is owned by the employer the perquisite is
(i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census ;
(ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs
as per 2001 census ;
(iii) 7.5% of salary in other areas.
- (b) Where the accommodation is taken on lease by the employer the perquisite is the actual amount of lease rental paid or payable by the employer or 15% of salary which ever is lower, as reduced by the rent if any actually paid by the employee.
- (c) Value of Furnished Accommodation - The value would be the value of unfurnished accommodation as computed above increased by 10% per annum of the cost of furniture (including T.V./radio/ refrigerator/AC/other gadgets). In case such furniture is hired from a third party, the value of unfurnished accommodation would be increased by the hire charges paid/payable by the employer. However, any payment recovered from the employee towards the above would be reduced from this amount.
- (d) Value of hotel accommodation provided by the employer- The value of perquisite arising out of the above would be 24% of salary of the previous year or the actual charges paid or payable to the hotel, whichever is lower. The above would be reduced by any rent actually paid by the employee. It may be noted that no perquisite would arise if the employee is provided such accommodation on transfer from one place to another for a period of 15 days or less.