Rule 3(1) as amended by notification No. 94/2009 dated 18-12-2009]
Accommodation at Concessional Rent means that employer has given a house to his employee for which he is charging a part of the rent or employee is paying a part of the rent and thus employee is enjoying a perquisite the valuation of which shall be made as under.
First of all calculate the value of the house as if accommodation provided by the employer is totally free, i.e., employer has not charged any rent for the accommodation provided to the employee.
After calculating value of rent free accommodation, deduct the amount of rent charged by the employer from the employer for that accommodation.
After deducting the amount of rent paid by employee, the balancing amount (if it is positive figure) if any, shall be treated as value of concessional accommodation.
Note. In case the balance amount is negative, then the value of concessional accommodation shall be nil.