Income Tax Act, 2025
Section 4: Subs. by s. 11, ibid., for clause (a) (w.r.e.f. 12006).
4. Subs. by s. 11, ibid., for clause (a) (w.r.e.f. 12006).
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accommodation determined at the rate of twenty-four per cent. of salary paid or payable for
the previous year or the actual charges paid or payable to such hotel, whichever is lower, for
the period during which such accommodation is provided, exceeds the rent recoverable from,
or payable by, the assessee.
Explanation 2.—For the purposes of this sub-clause, value of furniture and fixture shall be
ten per cent. per annum of the cost of furniture (including television sets, radio sets, refrigerators,
other household appliances, air-conditioning plant or equipment or other similar appliances or
gadgets) or if such furniture is hired from a third party, the actual hire charges payable for the
same as reduced by any charges paid or payable for the same by the assessee during the previous
year.
Explanation 3.—For the purposes of this sub-clause, “salary” includes the pay, allowances,
bonus or commission payable monthly or otherwise or any monetary payment, by whatever name
called, from one or more employers, as the case may be, but does not include the following,
namely:—
(a) dearness allowance or dearness pay unless it enters into the computation of
superannuation or retirement benefits of the employee concerned;
(b) employer’s contribution to the provident fund account of the employee;
(c) allowances which are exempted from the payment of tax;
(d) value of the perquisites specified in this clause;
(e) any payment or expenditure specifically excluded under the proviso to this clause.]
1[Explanation 4.—For the purposes of this sub-clause, “specified rate” shall be—
(i) fifteen per cent. of salary in cities having population exceeding twenty-five lakhs as
per 2001 census;
(ii) ten per cent. of salary in cities having population exceeding ten lakhs but not
exceeding twenty-five lakhs as per 2001 census; and
(iii) seven and one-half per cent. of salary in any other place;]
(iii) the value of any benefit or amenity granted or provided free of cost or at concessional
rate in any of the following cases—
(a) by a company to an employee who is a director thereof;
(b) by a company to an employee being a person who has a substantial interest in the
company;
(c) by any employer (including a company) to an employee to whom the provisions of
paragraphs (a) and (b) of this sub-clause do not apply and whose income 2[under the head
“Salaries” (whether due from, or paid or allowed by, one or more employers), exclusive of
the value of all benefits or amenities not provided for by way of monetary payment, exceeds
3[fifty thousand rupees:]]
4* * * * *
(w.r.e.f. 12006).
141
accommodation determined at the rate of twenty-four per cent. of salary paid or payable for
the previous year or the actual charges paid or payable to such hotel, whichever is lower, for
the period during which such accommodation is provided, exceeds the rent recoverable from,
or payable by, the assessee.
Explanation 2.—For the purposes of this sub-clause, value of furniture and fixture shall be
ten per cent. per annum of the cost of furniture (including television sets, radio sets, refrigerators,
other household appliances, air-conditioning plant or equipment or other similar appliances or
gadgets) or if such furniture is hired from a third party, the actual hire charges payable for the
same as reduced by any charges paid or payable for the same by the assessee during the previous
year.
Explanation 3.—For the purposes of this sub-clause, “salary” includes the pay, allowances,
bonus or commission payable monthly or otherwise or any monetary payment, by whatever name
called, from one or more employers, as the case may be, but does not include the following,
namely:—
dearness allowance or dearness pay unless it enters into the computation of
superannuation or retirement benefits of the employee concerned;
employer’s contribution to the provident fund account of the employee;
allowances which are exempted from the payment of tax;
value of the perquisites specified in this clause;
any payment or expenditure specifically excluded under the proviso to this clause.]
1[Explanation 4.—For the purposes of this sub-clause, “specified rate” shall be—
fifteen per cent. of salary in cities having population exceeding twenty-five lakhs as
per 2001 census;
ten per cent. of salary in cities having population exceeding ten lakhs but not
exceeding twenty-five lakhs as per 2001 census; and
seven and one-half per cent. of salary in any other place;]
the value of any benefit or amenity granted or provided free of cost or at concessional
rate in any of the following cases—
by a company to an employee who is a director thereof;
by a company to an employee being a person who has a substantial interest in the
company;
by any employer (including a company) to an employee to whom the provisions of
paragraphs
and
of this sub-clause do not apply and whose income 2[under the head
“Salaries” (whether due from, or paid or allowed by, one or more employers), exclusive of
the value of all benefits or amenities not provided for by way of monetary payment, exceeds
3[fifty thousand rupees:]]
4* * * * *