VALUATION OF PERQUISITES

Rent-free accommodation
Particulars of emoluments paid by X’s employer are as follows
Basic Salary - 12000pm, DA (not taken into consideration for
calculation of retirement benefits) -400pm, Lunch Allowance-
200pm, Medical Allowance-500pm, CCA-300pm, Children
Education Allowance (per child for two children) -230pm
X is provided a rent free accommodation in Delhi. The cost of
furniture is Rs100000/- Two Air Conditioners are provided,
which are hired at Rs2000 per anum. Calculate Value of Rent
Free Accommodation if
(i) Employer is Central Government
(ii) Employer is PQR Company and taken the accommodation
on rent at Rs5000pm
X is working as a General manager in Dream India
Company. Particulars of the salary are as under :
Basic Salary – 10000pm, Bonus 19200, Conveyance
Allowance – (70% spent on official duties) – 14000,
Medical Allowance – 500pm, Employer’s Controbition
to recognised provident fund – 20% of salary.
He is provided with rent free accommodation in
Moradabad whose population exceeds 10 lakhs but
does not exceed 25 lakhs
Compute Value of Rent Free Accommodation if
(i) Accommodation is owned by Company
(ii) Accommodation is taken on rent by the company at
7000pm
X, an employee of ABC Company received following
emoluments
Basic – Rs15000/- pm
DA (forming part of salary) – 40% of basic salary,
Children Education Allowance Rs200 pm per child
CCA – Rs300pm
Transport Allowance for commuting between residence
and office – Rs1000 pm
She is provided with an rent free accommodation.
Compute Gross Salary if accommodation is situated in a
city having population
(i) not exceeding 10 lakhs as per 2001 Census
(ii) >10lakhs but <25lakhs
(iii) exceeding 25 lakhs