Rule 3(a)(i) of Income-tax Rules - Valuation of perquisite represented by rent-free residential accommodation in the case of Government employees - Effect of amendments made by Income-tax (Third Amendment) Rules, 1974

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..... ntial accommodation in the case of Government employees - Effect of amendments made by Income-tax (Third Amendment) Rules, 1974 1. The Income-tax (Third Amendment) Rules, 1974, notified by the Central Board of Direct Taxes on 21-9-1974, have substituted sub-clause (i) of clause (a) of rule 3 of the Income-tax Rules, relating to valuation of the perquisite represented by rent-free residential acco .....

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..... nment for allotment of residences to its officers. Under the new provision, the perquisite value of rent-free residential accommodation in such cases will be determined as follows : 1. If the accommodation is unfurnished, the perquisite value of the accommodation will be determined on the same basis as adopted hitherto. The perquisite value will thus be taken to be an amount equal to the rent, wh .....

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..... quisite value of free furniture (including television sets, radio sets, refrigerators, other household appliances and air-conditioning plant and equipment) provided to all categories of salaried taxpayers will be taken to be 15 per cent1 of the original cost of such furniture or, where the furniture is hired, the hire charges payable by the employer. 3. The new provision has come into force on 21 .....

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