perquisite value of furnished accomodation

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veena (Querist)
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11 November 2009 I am provided with a furnished room by my employer in its guesthouse consisting of 4 rooms.I want to know the perquisite value of such furnished room provided to me.Whether perquisite @ 15% will be calculated on the full value of the guesthouse or it has to be proportionately calculated for only one room that is provided by me.Please answer the query at the earliest

Ghanshyam T Jha

Ghanshyam T Jha (Expert)
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13 November 2009 Dear Veena,

Your perquisites Value will be as under:

a) if guest house owned by your employer than
15% of slary in city having population excedding 25 Lacs; 10% of slary in city having population excedding 10 Lakhs but not exceeding 25 Lac; 7.5% of slary for other city. or

b) if guest house is taken on rent by your employer than actual amount of rent paid in respective of your area or 15% of salary, which is lower.

and above amount will be increased by 10% of the cost of furniture, if furniture is taken on rent from third party then rent amount will be added.