TMI BlogComputation of Perquisite - Value of residential accommodation provided by the employer to employeeX X X X Extracts X X X X X X X X Extracts X X X X ..... lled the Income tax (Eighteenth Amendment), Rules, 2023. (2) They shall come into force with effect from the 1st day of September, 2023. 2. In the Income-tax Rules, 1962 , in rule 3 , ( i ) for sub-rule (1), the following shall be substituted, namely: - (1) The value of residential accommodation provided by the employer, for the purpose of sub-clauses (i) and (ii) of sub-section (2) of section 17, during the previous year shall be determined on the basis provided in the table I given below: TABLE-I Sl. No. Circumstances Where accommodation is unfurnished Where accommodation is furnished (1) (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other similar appliances or gadgets) or if such furniture is hired from a third party, by 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. (ii) 7.5% of salary in cities having population exceeding 15 lakhs but not exceeding 40 lakhs as per 2011 census; (iii) 5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee. (b) where the accommodation is taken on lease or rent by the employer. Actual amount of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shore site (i) which, having plinth area not exceeding 1000 square feet, is located not less than eight kilometres 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 ninety days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided to the employee, whichever is later.; (ii) in the Explanation, for clause (v), the following clause shall be substituted, namely:- (v) remote area , for purposes of proviso to sub-rule(1) means any area other than an area which is located- (a) within the local limits of ; or (b) within a distance, measured aerially, of 30 kilometers from the local limits of, any municipality or a cantonment board having a population of 1,00,000 or more based on the 2011 census ; [F. No. 370142/21/2023-TPL Part (1)] AMRIT PRITOM CHETIA, Under Secy. Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide notification number S.O. 969 (E) dated the 26th M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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