City in which accommodation is provided Value of perquisite Having population exceeding 25 lacks as per 2001 15% of salary for the period during which the census employee occupied the said accommodation. Having population exceeding 10 lacks but not 10% of salary for the period during which the exceeding 25 lacks as per 2001 census employee occupied the said accommodation. Any other city 7.5% of salary for the period during which the employee occupied the said accommodation III) Other Employees (residual category) The value of perquisite is determined as per the following table: City in which Accommodation is owned by Accommodation not accommodation is provided the employer owned by the employer 15% of salary for the period Having population exceeding during which the employee 25 lacks as per 2001 census accommodation 10% of salary for the period Rent paid or payable by the Having population exceeding during which the employee employer or 15% of salary, 10 lacks but not exceeding 25 occupied the said whichever is lower lacks as per 2001 census accommodation occupied the said 7.5% of salary for the period during which the employee occupied the said accommodation Any other city s13 ILLUSTRATION Mr. Chauhan has the following salary structure :: a) Basic Salary 5,000 p.m. b) Entertainment Allowance 1,000 p.m. c) Education Allowance 500 p.m. (he has d) DA 3,000 p.m. three children) e) Fees 5,000 p.a. f) Bonus 10,000 p.a. g) Professional tax of employee paid by 2,000 for the year employer h) He has been provided a rent-free accommodation in Mumbai. i) 60% of DA only forms part of retirement benefits Compute taxable value of accommodation in the hands of Mr. Chauhan in the following cases. i) The employer owns such accommodation. ii) The employer hires such accommodation at a monthly rent of 900