TMI BlogSalary, perquisite and profits in lieu of salary definedX X X X Extracts X X X X X X X X Extracts X X X X ..... mployer ] in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD; ] 39 [ (ix) the contribution made by the Central Government in the previous year, to the Agniveer Corpus Fund account of an individual enrolled in the Agnipath Scheme referred to in section 80CCH; ] (2) perquisite includes- (i) the value of rent-free accommodation provided to the assessee by his employer 40 [ computed in such manner as may be prescribed ] ; 41 [ (ii) the value of any accommodation provided to the assessee by his employer at a concessional rate. Explanation. For the purposes of this sub-clause, it is clarified that accommodation shall be deemed to have been provided at a concessional rate, if the value of accommodation computed in such manner as may be prescribed, exceeds the rent recoverable from, or payable by, the assessee; ] (iii) the value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases- (a) by a company to an employee who is a director thereof; (b) by a company to an employee being a person who has a substantial interest in the company; (c) by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any specified security or sweat equity sharesshall be the fair market value of the specified security or sweat equity shares, as the case may be, on the date on which the option is exercised by the assessee as reduced by the amount actually paid by, or recovered from, the assessee in respect of such security or shares; (d) fair market value means the value determined in accordance with the method as may be prescribed; (e) option means a right but not an obligation granted to anemployee to apply for the specified security or sweat equity shares at a predetermined price; 37 [ (vii) the amount or the aggregate of amounts of any contribution made to the account of the assessee by the employer (a) in a recognised provident fund; (b) in the scheme referred to in sub-section (1) of section 80CCD; and (c) in an approved superannuation fund, to the extent it exceeds seven lakh and fifty thousand rupees in a previous year; (viia) the annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme referred to in sub-clause (vii) to the extent it relates to the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36 [***] (vi) any expenditure incurred by the employer on- (1) medical treatment of the employee, or any member of the family of such employee, outside India; (2) travel 21 [ and ] stay abroad of the employee or any member of the family of such employee for medical treatment; (3) travel and stay abroad of one attendant who accompanies the patient in connection with such treatment, 22 [ subject to the condition that- (A) the expenditure on medical treatment and stay abroad shall be excluded from perquisite only to the extent permitted by the Reserve Bank of India; and (B) the expenditure on travel shall be excluded from perquisite only in the case of an employee whose gross total income, as computed before including therein the said expenditure, does not exceed two lakh rupees ;] (vii) any sum paid by the employer in respect of any expenditure actually incurred by the employee for any of the purposes specified in clause (vi) subject to the conditions specified in or under that clause : 23 [Provided further that for the assessment year beginning on the 1st day of April, 2002, nothing contained in this clause shall apply to any employee whose in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -4-2006. Thus, clause (a) of Explanation 1 to section 17(2)(ii), as applicable for the period 1-4-2002 to 31-3-2006, read as under : (a) in a case where an unfurnished accommodation is provided by any employer other than the Central Government or any State Government and- (i) the accommodation is owned by the employer, the value of the accommodation determined at the rate of ten per cent of salary in cities having population exceeding four lakhs as per 1991 census and seven and one-half per cent of salary in other cities, in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee; (ii) the accommodation is taken on lease or rent by the employer, the value of the accommodation being the actual amount of lease rental paid or payable by the employer or ten per cent of salary, whichever is lower, in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee; 6. Inserted by the Finance Act, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstitution, clause (ii) was substituted by the Finance Act, 1992, w.e.f. 1-4-1993. 18. Inserted by the Finance Act, 2006, w.e.f. 1-4-2007. 19. Inserted by the Finance Act, 2006, w.e.f. 1-4-2007. 20. Substituted for ten by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. 21. Substituted for or by the Finance Act, 1993, w.e.f. 1-4-1993. 22. Substituted by the Finance Act, 1993, w.e.f. 1-4-1993. Prior to its substitution, it was amended by the Finance Act, 1992, w.e.f. 1-4-1993. 23. Inserted by the Finance Act, 2002, w.e.f. 1-4-2002. 24. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993. 25. Sub-clause (vi) along with consequential amendments in sub-clauses (iv) and (v), omitted by the Finance Act, 1985, w.e.f. 1-4-1985. Original sub-clause was inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Amendment thus never came into operation. ..... 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(ii) the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer; 4 [Explanation 1.- For the purposes of this sub-clause, concession in the matter of rent shall be deemed to have been provided if,- 5 [ (a) in a case where an unfurnished accommodation is provided by any employer other than the Central Government or any State Government and- (i) the accommodation is owned by the employer, the value of the accommodation determined at the specified rate in respect of the period during which the said accommodation was occupied by the assessee during the previous year exceeds the rent recoverable from, or payable by, the assessee; (ii) the accommodation is taken on lease or rent by the employer, the value of the accommodation being the actual amount of lease rental paid or payable by the employer or fifteen per cent of salary, whichever is lower, in respect of the period during which the said accommodation was occupied by the assessee during the previous year exceeds the rent recoverable from, or payable by, the assessee;] (b) in a case where a furnished accommodation is provided by the Central Government o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same by the assessee during the previous year. Explanation 3.- For the purposes of this sub-clause, salary includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called, from one or more employers, as the case may be, but does not include the following, namely:- (a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned; (b) employer's contribution to the provident fund account of the employee; (c) allowances which are exempted from the payment of tax; (d) value of the perquisites specified in this clause; (e) any payment or expenditure specifically excluded under the proviso to this clause .] 6 [Explanation 4. -For the purposes of this sub-clause, specified rate shall be- (i) fifteen per cent of salary in cities having population exceeding twenty-five lakhs as per 2001 census; (ii) ten per cent of salary in cities having population exceeding ten lakhs but not exceeding twenty-five lakhs as per 2001 census; and (iii) seven and one-half per cent of salary in any other place; ] - - ..... 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