## Rent-Free Accommodation (RFA) / House Facility
The perquisite value of accommodation provided by employer depends on the employer's category and accommodation type.
### Valuation Table
| Case | Taxable Value |
|---|---|
| Government Employee | Licence fee as decided by Government |
| Employer-owned house (Pvt sector) — population ≤ 15 lakh | 5% of Salary |
| Same — population > 15 lakh ≤ 40 lakh | 7.5% of Salary |
| Same — population > 40 lakh | 10% of Salary |
| House rented by employer | Lower of: 10% of Salary OR Rent paid by employer |
| Hotel accommodation | Lower of: 24% of Salary OR Hotel rent paid by employer |
Hotel stay on transfer up to 15 days at the new place is fully exempt.
### Adjustments
1. Furnished house: Add value of furniture = 10% p.a. of actual cost (if owned) or hire charges (if rented).
2. Rent recovered from employee: Deduct from the above taxable value.
3. Multi-year cap: If accommodation is provided for more than 1 PY, Maximum Taxable Value for current PY = Taxable value for first PY × (CII for current PY ÷ CII for first PY).
### Definition of "Salary" for RFA
Salary = All taxable salary EXCEPT:
- Arrears / Advance salary
- Normal Dearness Allowance (DA not forming part of retirement benefits)
- Retirement benefits (gratuity, pension, leave salary, retirement compensation)
- Provident Fund
- Perquisites
Salary is to be taken only for the period during which the house was occupied by the employee.