Perquisites - Supply of Gas, Electricity or Water Facility - Rule 3(4) - Income Tax - Ready Reckoner - Income Tax

Rule 3(4) : SUPPLY OF GAS, ELECTRICITY OR WATER FACILITY Circumstances Value of benefit (a) where such supply is made from resources owned by the employer without purchasing from outside agency It shall be the manufacturing cost per unit incurred by the employer (b) In any other case Amount paid on this account by the employer to the agency supplying the gas, electric energy or water Less: The amount recovered from the employee for such service Note: Gas/ Electricity / Water Allowance given to an employee is always chargeable to tax fully. Note: If Gas/ Electricity / Water connections are in the name of employees and the expenses are met by employer, then it an obligation of the employee being discharged by the employer and therefore this perquisite is taxable in the hands of all employees.