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Does the IT Act allows tax deduction for perquisites

I am working in a PSU and staying in accommodation allotted by the company. Apart from not getting HRA, 15% of the total income is clubbed into my gross annual income and tax deducted accordingly for accommodation. I am also paying the licence fee for the type of quarter allotted to me apart from other maintenance charges. Does the Income Tax Act allow clubbing of 15 % of income with my annual gross income and deduction of tax by the employer?
Amit Maheshwari Partner, Ashok Maheshwary and Associates replies: In case of unfurnished accommodation provided by the central or state government to employees, the licence fee is clubbed to gross taxable salary. In your context, as the accommodation is provided by a PSU, the taxable value of perquisites shall be according to the population of city in which it is provided. Therefore, if population of the city exceeds 25 lakh then clubbing of sum of 15% of the total income is in order. Further, license fee paid by you would be deducted from the value of taxable perquisites.
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