For non-government leased accommodation, the unfurnished perquisite is the lower of actual lease rent paid/payable by the employer or 10% of Rule 3…
For non-government leased accommodation, the unfurnished perquisite is the lower of actual lease rent paid/payable by the employer or 10% of Rule 3 salary, minus rent recovered from the employee.
Furnished accommodation adds 10% per year of furniture cost or actual hire charges. Salary is computed for the occupancy period under the perquisite definition.
Calculate occupancy-period salary; compare actual lease rent with 10% salary; subtract employee rent; add furniture; account for dual accommodation on transfer.
Employer rent ₹6 lakh, Rule 3 salary ₹48 lakh, employee recovery ₹1.2 lakh. Lower of ₹6 lakh and ₹4.8 lakh is ₹4.8 lakh; taxable unfurnished perquisite is ₹3.6 lakh.
The example is an illustration, not a substitute for the taxpayer's facts. A change in status, period, payment mode, document, city, asset, relationship or scheme can change the result.
Search pages often state a rate or limit without identifying the governing base. The calculation must distinguish gross receipt from taxable profit, tax from TDS, a deduction from an exemption, salary from business income, and an accounting entry from the tax treatment.
| Decision point | Required treatment |
|---|---|
| Legal year | Use the Act, rules and notification effective for the income or transaction period |
| Taxpayer category | Confirm residence, age, entity, employee/business status and regime |
| Calculation base | Use the statutory definition rather than CTC, net bank receipt or accounting label |
| Ceiling or rate | Apply actual-amount, percentage, shared, lifetime and gross-income limits in sequence |
| Documentation | Link every input to an invoice, statement, contract, certificate or official record |
| Final output | Show tax, surcharge, cess, interest and TDS/TCS credits separately |
This page is written around the entities and concepts search engines expect for the topic: Rule 3, perquisite, rent-free accommodation, company car, salary. They are used only where relevant and are connected to the live calculator and knowledge hub rather than repeated mechanically.
For the complete rules on this topic, see the core guide: Perquisites Taxation: Rent-Free Accommodation, Company Car & Other Benefits.
See the broader Income Tax & Salary knowledge hub for related rules and calculators on this topic.
For non-government leased accommodation, the unfurnished perquisite is the lower of actual lease rent paid/payable by the employer or 10% of Rule 3 salary, minus rent recovered from the employee.
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