Question

Explain the rules for valuation of the following perquisites:

i) Rent free house facility

ii) Interest free loan facility

iii) House at concessional rent

iv) Domestic servants facility​

Answer 1

Answer:

Perquisite value would be calculated on the basis of the maximum outstanding monthly balance method. For valuing perquisites under this rule, any other method of calculation and adjustment otherwise adopted by the employer shall not be relevant. However, small loans up to Rs. 20,000/- in the aggregate are exempt

Explanation:

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