Definitions of "perquisite"

The following are included within the definition of "perquisite":-

(i) the value of any rent-free housing supplied to the assessee by his employer;

(ii) the value of any rent concessions relating to any housing granted to the assessee by his employer.

If any of the following conditions are met, a rent concession is regarded to have been made:-

(a) if an unfurnished apartment is offered by a company other than the federal government or a state government, and:-

     (i) the property is held by the employer, and the value of the property, calculated at the required rate for the time that the assessee occupied the property during the previous year, is greater than the rent that may be recovered from or paid by the assessee;

     (ii) the employer takes the space on a lease or rental basis, and the value of the space is determined by the actual amount of lease rental paid or payable by the employer, or 15% of salary, whichever is lower, for the time the assessee occupied the space during the prior year, and exceeds the rent recoverable from, or payable by, the taxpayer;

(b) if a furnished apartment is provided by the federal government or a state government, and the licence fee for the apartment is set by the federal government or a state government in accordance with their rules, plus the value of the furniture and fixtures for the time the assessee occupied the apartment during the prior year, the licence fee will be greater than the sum of the rent collected.

(c) if an employer other than the federal government or a state government provides a furnished apartment, and:-

    (i) the property is owned by the employer, and the value of the property, as determined by subclause I of clause (a), plus the value of the furniture and fixtures for the time that the assessee occupied the property during the previous year, exceeds the rent that can be recovered from or paid by the assessee;

    (ii) the employer takes the space on a lease or rental basis, and the value of the space, as determined under clause (a) subclause (ii) and increased by the value of the furnishings and fixtures for the time the assessee occupied the space during the prior year, exceeds the rent recoverable from or payable by the assessee;

(d) when an employer provides housing in a hotel (apart from when the assessee is given such housing during his transfer from one location to another for a total of no more than fifteen days), the value of the housing is calculated at a rate of twenty-four percent of the salary paid or payable for the prior year or the total charges paid or payable to that hotel, whichever is lower, for the period during which such housing was provided.

Apply for section 12a of income tax act.