Central Board of Direct Taxes, CBDT has notified rule for determination of value of perquisite in respect of residential accommodation provided by employer. The Finance Act, 2023 brought in an amendment for the purposes of calculation of perquisite with regard to the value of rent-free or concessional accommodation provided to an employee, by his employer. Accordingly, CBDT has modified Rule 3 of the Income-tax Rules, 1961 to provide for the same. The categorisation and the limits of cities and population have now been based on the 2011 census as against the 2001 census earlier. The revised limits of population are 40 lakh in place of 25 lakh and 15 lakh in place of 10 lakh. The earlier perquisite rates of 15 percent, 10 percent and 7.5 percent of the salary have now been reduced to 10 percent, 7.5 percent and 5 percent of the salary in the amended Rule.