Valuation of Residential Accommodation
(1) Provided by Central or State Government = At License fee
[2) Accommodation owned by employer = 15% of salary for
cities with population over ` 25 Lakh
= 10% of salary for other cities with population over ` 10 lakh and below `25lakh
= 7.5% of salary in
 Accommodation taken on lease = 15% of salary
[4) Accommodation in Hotel = 24% of salary
[excluding for 15
days on transfer]
(5) Remote Area = NIL
[6) Two Accommodation provided = To be taxed if exceeds more than
90 days for transfer.
(7) Furnished Accommodation = 10% of cost of
furniture, etc. [other than hotels).
Valuation of Motor Car [From A. Y. 2010-2011]:
Now that the Fringe Benefit Tax is scrapped with effect from the A.Y.
2010—2011 the valuation of motor car has to be taken as per Rule 3 of
Income Tax Rules 1962.
Perquisite value would be ` 1,800 p.m. or ` 2,400 p.m. for car for personal and official purposes depending on the C.C. of engine up to 1.6 litre or more.
For chauffeur add ` 900 p.m. extra.