Perquisite Valuation and Tax
Rule 3 of Income Tax Rules 1962 defines Valuation of perquisites to employees.
Provisions in Income Tax Rules 1962 related to Rule 3 is as under:
Valuation of perquisites.
3. For the purpose of computing the income chargeable under the head "Salaries", the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:—
(1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table provided in the income tax Rules