Salaries and allowances-Perquisites boarding and lodging--Determination of value-Instruction regarding. - Income Tax - 35/24/59-IT(AI)

Circular Number: 7(LVIII-13) File Number: 35/24/59-IT(AI) Dated 02-03-1960 Subject: Salaries and allowances-Perquisites boarding and lodging--Determination of value-Instruction regarding. The Board observe that no uniform practice is being followed in all the Commissioners' charges for the valuation of perquisites by way of free boarding and lodging in the case of hotel employees who are obliged to live in the hotel premises and who are provided free boarding. It has now been decided that the value of such perquisites should be determined as under: Lodging: 12-1/2 or 10% of the salary according as the accommodation provided is furnished or unfurnished or the usual rent of the accommodation, whichever is less. Boarding: The hotel's actual cost (including overheads) of the food supplied to the employees. 2. The above formula is to be applied only to bona fide employees and not directors who have a substantial interest in the hotel company. Yours faithfully, (Sd.) D.V. Junnarkar, Under Secy. Central Board of Direct Taxes.