Income Tax
Perquisite — Meaning
A non-cash benefit from an employer — housing, car, ESOPs, concessional loans — taxed as salary.
What is Perquisite?
Perquisites are benefits given by an employer in addition to cash salary and are taxed as salary at values set by the Income-tax Rules. Examples include rent-free accommodation (valued at 10%, 7.5% or 5% of salary depending on city population), use of a company car, interest-free or concessional loans above ₹2 lakh, gifts above ₹5,000 a year, ESOP and RSU allotments, and employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year. Perquisites are taxable in both regimes.
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Related terms
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
