TMI BlogIncome-Tax (Thirteenth Amendment) Rules, 2009 - Rule 3 regarding Valuation of perquisites Substituted and Rule 40F insertedX X X X Extracts X X X X X X X X Extracts X X X X ..... following sub-rules, namely:- (1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below: TABLE I Sl. No. Circumstances Where accommodation is unfurnished Where accommodation is furnished (1) (2) (3) (4) (1) Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State. 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 he same by the employee d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site- (i) which, being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometers away from the local limits of any municipality or a cantonment board; or (ii) which is located in a remote area: Provided further that where on account of his transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value with reference to the Table above for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table. Explanation.- For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re met or reimbursed by the employer; Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car) Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car) (ii) the expenses on running and maintenance for private or personal use are fully met by the assessee. Rs. 600 (plus Rs.900, if chauffeur is also provided by the employer to run the motor car) Rs. 900 (plus Rs. 900, if chauffeur is also provided to run the motor car) (2) Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and- (i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes; No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. (ii) such reimbursement is for the use of the vehicle partly for official purposes and partl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such a case shall be the actual amount of charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled:- (a) the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon; (b) the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties. Explanation .- For the purposes of this sub-rule, the normal wear and tear of a motor-car shall be taken at 10% per annum of the actual cost of the motor-car or cars. (3) The value of benefit to the employee or any member of his household resulting from the provision by the employer or services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity: Provided that nothing contained in this sub-rule shall apply to the employees of an airline or the railways. (7) In terms of provisions contained in sub-clause (viii) of clause 2 of section 17, the following other benefits or amenities and value thereof shall be determined in the manner provided hereunder: (i) The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate charged per annum by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant previous year in respect of loans for the same purpose advanced by it on the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household: Provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation. (iv) The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift: Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as nil. (v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity: Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii) The value of benefit to the employee arising from the transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his household shall be determined to be the amount representing the actual cost of such assets to the employer as reduced by the cost of normal wear and tear calculated at the rate of 10% of such cost for each completed year during which such asset was put to use by the employer and as further reduced by the amount, if any, paid or recovered from the employee being the consideration for such transfer: Provided that in the case of computers and electronic items, the normal wear and tear would be calculated at the rate of 50% and in the case of motor cars at the rate of 20% by the reducing balance method. (ix) The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under an arms length transaction as reduced by the employees contribution, if any: Provided that nothing contained in this clause shall apply to the expenses on telephones including a mobile phone actually incurred on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (c) opening price of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange: Provided that where the stock exchange quotes both buy and sell prices, the opening price shall be the sell price of the first settlement. (d) recognised stock exchange shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (e) specified date means, (i) the date of exercising of the option; or (ii) any date earlier than the date of the exercising of the option, not being a date which is more than 180 days earlier than the date of the exercising. (9) For the purposes of sub-clause (vi) of clause 2 of section 17 , the fair market value of any specified security, not being an equity share in a company, on the date on which the option is exercised by the employee, shall be such value as determined by a merchant banker on the specified date. Explanation . - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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