TMI BlogPerquisites - Accommodation (Rent Free / Concessional) - Rule 3(1)X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as reduced by the rent paid by the employee. Lease / Rent paid by the employer or 10% of Salary Where the accommodation is owned or taken on lease or rent by the employer and the same accommodation is continued to be provided to the same employee for more than one previous year, the amount calculated in accordance with SL. No.2(a) or 2(b) shall not exceed the amount so calculated for the first previous year, as multiplied by the amount which is a ratio of the Cost Inflation Index for the previous year for which the amount is calculated and the Cost Inflation Index for the previous year in which the accommodation was initially provided to the employee. 3. Accommodation in a hotel is not a taxable perquisite if the following two conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act . Perquisites is not taxable in following cases: 1. Any accommodation temporarily 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, having plinth area not exceeding 1000 square feet, is located not less than 8 KMs away from the local limits of any municipality or a cantonment board; or (ii) which is located in a remote area 2. Hotel accommodation for 15 days ( in aggregate in a previous year ) can be provided immediately after transfer at the new location as tax free perquisite. 3. If an employee is transferred and housing facility is provided to him at the new location (he has yet to vacate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FURNISHED ACCOMMODATION Provided by the Central / State Govt. to the employees / any other employer provide accommodation to the employee whether it is owned or leased or rent Value of accommodation determined as if it is an unfurnished accommodation as above and 10% p.a. of the cost of furniture if owned by the employer and / or the actual hire charges paid / payable, if hired from third party, as reduced by Any charges paid / payable for such furniture by employee during the P/Y (if any) Accommodation in a hotel (Provided by any employer) TV = Lower of: 24% of salary for the period during which such accommodation is provided during P/Y Actual charges paid or payable to such hotel by the employer Salary for the purpose of Valuation of Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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