WHAT IS PERQUISITE VALUE OF FREE SUPPLY OF GAS, ELECTRICITY AND WATER FOR HOUSE-HOLD CONSUMPTION?
LAW APPLICABLE, AT THE OPTION OF THE ASSESSEE, UPTO 30.9.2001. In case the supply is made from resources owned by the employer, the perquisite value is ‘Nil’. Where the supply is taken from third party, the perquisite value would be the expenses incurred by the employer. In case the supply is partly for official and partly for private purposes, the perquisite value is its actual cost to the employer or 6.25% of salary, whichever is Less, THE LAW APPLICABLE FOR TAXATION OF PERQUISITES W.E.F. 1.4. 2001. For free supply of gas, electricity and water for household consumption the old rules already provide that the amount paid by the employer to the agency supplying the amenity shall be the value of perquisite. However, when the supply is made from employer’s own resources, the value of perquisite was taken as Nil. The separate provision in the old rules of valuation at 6.25% of salary of the taxpayer for part official use is discontinued. Under the new rules even where the supply is made f
