In case the accommodation provided is owned by the company,the taxable value of the perquisite will be 15 % of salary if population of the city is more than 25 lacs,10 % of the salary if population of the city is between 10 and 25 lacs and 7.5 % of the salary if population of the city where accommodation is provided is less than 10 lacs.If any deduction is made towards rent by emplyer,that will be reduced from the value of perquisite.Salary for this purpose is basic salary,DA,all payments received in cash but does not include perquisites and allowances to the extent exempt from tax.This amendment is appliacable from 2005-06 onwards.
