Salaried individuals in addition to their usual monthly take aways, get perks or additional benefits, one of such is provision of gas, electricity and water supply, the basis of calculation of such as below:

The above is taxable on the following basis:

Step 1- Find out cost to the employer –

If purchased from outside agency by employer – Amount paid or payable by the employer to the outside agency.

If supplied by the employer out of own sources- Manufacturing cost per unit incurred by the employer.

Step 2 – Less – Amount recovered from the employee

Step 3 – Taxable value will be the balancing figure (1-2) (if it is positive)

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