Salary and allowance-Valuation of perquisites of free boarding and lodging-Determination of value-Instruction regarding - Income Tax - 311/1981

Salary and allowance-Valuation of perquisites of free boarding and lodging-Determination of value-Instruction regarding Circular No. 311 Dated 24/8/1981 To All Commissioners of Income-tax. Sir, Subject: Salary and allowance-Valuation of perquisites of free boarding and lodging-Determination of value-Instruction regarding. Attention is invited to Board's Circular dated 2nd March, 1960, issued from F. No. 35/24/59-IT(AI) on the above subject. A copy of this circular is enclosed for ready reference*. 2. Rule 3 of the Income-tax Rules, 1962, lays down the mode of valuation of perquisites. The provisions of rule 3(a)(iii) would apply for valuation of rent-free residential accommodation provided by an employer to an employee. The valuation of perquisites in the form of free food will have to be determined in terms of rule 3(g). 3. In view of the specific provision contained in the Rules as mentioned hereinabove, the circular of 1960 stands superseded. Yours faithfully, (Sd.) V.B. Srinivasan, Secretary, Central Board of Direct Taxes.