NOTIFICATION NO. 68/2005, DATED 28-2-2005

In exercise of the powers conferred by section 295 read with sub-clause (vi) of clause ( 2) of section 17 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2005.

(2) They shall come into force on the 1st day of April, 2005.

2. In the Income-tax Rules, 1962, in rule 3,—

 (a)  in sub-rule (1), for Table I, the following Table shall be substituted, namely:—

“TABLE I

 

Sr. No.
Circumstances
Where accommodation is unfurnished
Where accommodation is furnished
(1)
(2)
(3)
(4)
1.
Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State or serving with any body or undertaking under the control of such Government on deputation
Licence fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
2.
Where the accommodation is provided by any other employer and-
(a ) Where the accommodation is owned by the employer, or
(i) 20% of salary in cities having population exceeding 4 lakhs as per 2001 census;
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
(ii) 15% of salary in other cities, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee.
(b ) Where the accommodation is taken on lease or rent by the employer.
Actual amount of lease rental paid or payable by the employer or 20% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
3.
Where the accommodation is provided by the employer specified in serial number (1) or (2) above in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate 15 days on his transfer from one place to another).
Not applicable.
24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period during which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee.”

 

[F. No. FB/9/2005-TPL]

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Category : Income Tax (25052)
Type : Notifications (15213) Notifications/Circulars (30079)

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