Income Tax Rules, 2002

From: 2023-11-01 - To: 0000-00-00 CHAPTER-II DETERMINATION OF INCOME HEADS OF INCOME 1[PART-l: SALARY 3. Valuation of perquisites, allowances and benefits.- For the purposes of computing the income chargeable to tax under the head “salary”, the value of all perquisites, allowances and benefits provided by the employer to the employee shall be included in the said income in accordance with the rules 4 to 7. _______________________________________________________ 1-Part I substituted by Notification No. SRO 668(I)/2006, dated June 27, 2006, earlier it was substituted by Notification No. SRO 609(I)/2002, dated September 10, 2002. 4. Valuation of accommodation.- The value of accommodation provided by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided. Provided that the value taken for this purpose shall, in any case, not be less than forty five percent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale. 1[:] 1[Provided further that where House Rent Allowance is admissible @ thirty percent, the value taken for the purpose of this rule shall be an amount not less than thirty percent of minimum of the time scale of basic salary or the basic salary where there is no time scale.] _______________________________________________________ 1-Proviso inserted and before it colon substituted for full stop by SRO 716(I)/2008, dated July 02, 2008. 5. Valuation of conveyance.- The value of conveyance provided by the employer to the employee shall be taken equal to an amount as below:- (i) Partly for personal and partly for official use 5% of: (a) the cost to the employer for acquiring the motor vehicle; or, (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer; (ii) For personal use only 10% of: 10% of: (a) the cost to the employer for acquiring the motor vehicle; or, (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer; and 6. For the purpose of this part, “employee”…