TMI BlogINCOME-TAX (FOURTEENTH AMENDMENT) RULES, 2007-AMENDMENT IN RULE 3 VALUATION OF PERQUISITESX X X X Extracts X X X X X X X X Extracts X X X X ..... ding office or post in connection with the affairs of the Union or of such State or serving with any body or undertaking under the control of such Government on deputation. License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee. The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year. (2) Where the accommodation is provided by any other employer and- (a) where the accommodation is owned by the employer, or (b) where the accommodation is taken on lease or rent by the employer. ( i ) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census; ( ii ) 10% of salary in ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. Circumstances Where cubic capacity 8/L3of engine does not exceed 1.6 litres Where cubic capacity of engine exceeds 1.6 litres (1) (2) (3) (4) (1) Where the motor car is owned or hired by the employer and (a) is used wholly and exclusively in the performance of his official duties; (b) is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer; No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Actual amount of expenditure incurred by the employer on die running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use. No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Actual amount of expenditure incurred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt specified in Sl. No. (1)(c)(i) above. No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by an amount of Rs. 600: No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Subject to the provisions contained in clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above. Not applicable Provided that where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-car or all or any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value of perquisite shall be the amount calculated in respect of one car in accordance with Sl. No. (l)(c)( i ) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to the employees of an airline or the railways ( iv ) in sub-rule (7),- ( a ) after item ( i ), the following items shall be inserted with effect from 1stApril, 2008, namely:- ( ii ) The value of travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer, who is not liable to pay fringe benefit tax under Chapter XH-H of the Act, for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 2B of these rules, shall be determined as the sum equal to the amount of the expenditure incurred by such employer in that behalf. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. Where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall also be a fringe benefit or amenity. However, where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity. ( vi ) ( A ) The value of benefit to the employee resulting from the payment or reimbursement by the employer, who is not liable to pay fringe benefit tax under Chapter XII-H of the Act, of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by any member of his household shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity. However, where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the initial fee paid for acquiring such corporate membership. ( B ) Nothing contained in this sub-rule shall apply if such expenditure is incurred wholly and exclusivel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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