The Central Board of Direct Taxes (CBDT) has notified amendments to the Income Tax Rules for valuing perquisites of rent-free or concessional accommodation by employers to employees.
The Finance Act, of 2023, had brought in an amendment for the purposes of calculation of ‘perquisite’ with regard to the value of rent-free or concessional accommodation provided to an employee, by his employer.
The new rules that will provide relief to the taxpayers will come into effect from September 1, 2023.
- 10 percent of salary in cities having a population exceeding 40 lakh as per the 2011 census.
- 7.5 percent of salary in cities having a population exceeding 15 lakh but not exceeding 40 lakh as per the 2011 census.