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BANSAL
30-12-2009, 09:40 PM
IN Govt of delhi sr officer are entitled for 50% charges of electicty and water bill alongwith an amount of Rs.1250/-p.m. for engaging one group D employee on their residence as per delhi cabinet approval.

My qustion is that whether the above said amount are taxable under Income Tax Act 1961.

tvenkatam
30-12-2009, 11:00 PM
IN Govt of delhi sr officer are entitled for 50% charges of electicty and water bill alongwith an amount of Rs.1250/-p.m. for engaging one group D employee on their residence as per delhi cabinet approval.

My qustion is that whether the above said amount are taxable under Income Tax Act 1961.

Dear Mr. Bansal,

Effective from April 01, 2009 the value of following perks provided by the employer to the employee or any member/s of employee’s household are also taxable vide the recently announced Income Tax (13th amendment) Rules, 2009.

Rule 3(4):
The value of the benefit to the employee resulting from the supply of gas, electric energy or water for his household consumption shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water. Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer. Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.

Rule 3(3):
The value of benefit to the employee or any member of his household resulting from the provision by the employer or services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.