Briefly describe the provision related to quantification of accommodation facilities provided to an employee.

The Income Tax Act, 2058 (amended) quantifies accommodation facilities provided to employees as follows:

1. Gross Annual Value (GAV) is the taxable amount, calculated as the lower of:
   • Actual rent paid by the employer (or fair market rent if owned), or
   • 10% of the employee’s basic salary + DA (if no rent is paid).
2. The GAV is included in the employee’s salary income and taxed under progressive slab rates.
3. No separate deduction is allowed for this perquisite, but employers may claim a 10% deduction on the GAV if provided voluntarily (subject to IT rules).
4. Exemptions do not apply if accommodation is a mandatory employment condition (e.g., for field staff).
5. Employers must document rent agreements, valuations, and salary details for compliance.