The value of benefit to the employee (or any member of his household) resulting from the provision by the employer of services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer.

The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employer for such services.

The following points should be noted –

1- If an employer provides a rent free house (owned by employer) to his employee, expenses (inclusive of salary of a gardener) incurred by the employer or maintenance of garden and ground attached to the house, is not taxable separately.
2- Domestic servant allowance given to an employee is always chargeable to tax. It is taxable even if the allowance is used for engaging a domestic servant.

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