# Perquisites Tax — Car, Housing, Loans & Benefits

> Perquisites are non-cash benefits from an employer, taxed as salary at values set by the Income-tax Rules. Rent-free housing owned by the employer is valued at 10%, 7.5% or 5% of salary depending on city population; a company car used partly for personal purposes at a fixed monthly amount; interest-free or concessional loans above ₹2 lakh at the SBI rate gap; and gifts above ₹5,000 a year are taxable. Employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year are also taxed.

Practice: Salary, RSU & ESOP Tax — https://www.industax.com/services/employee-tax/

Perquisite rules can make a benefit far cheaper than the equivalent cash — company-leased cars and housing are common examples — but the valuation details decide the outcome.

We help employers value perquisites correctly for TDS and help employees check their Form 16 and plan benefits.

## Key facts

| Item | Detail |
| --- | --- |
| Rent-free housing | 10% / 7.5% / 5% of salary by city population |
| Concessional loans | Above ₹2 lakh, valued at SBI rate gap |
| Gifts | Taxable above ₹5,000 a year |
| Retirement contributions | Above ₹7.5 lakh a year taxable |
| Car | Fixed monthly value depending on engine size and driver |

## Who needs this

- Senior employees with benefits
- Employers valuing perquisites for TDS
- Employees checking Form 16

## What's included

- Perquisite valuation
- Salary structuring
- Form 16 review
- ITR filing

## Documents

- Salary breakup and benefit policies
- Lease or loan agreements
- Form 16 / Form 12BA

## Process

1. **List** — All benefits identified.
2. **Value** — Perquisites valued under the rules.
3. **Report** — TDS and ITR aligned.

## FAQs

### Is a company car taxable if I use it for personal trips?

Yes. A car used for both official and personal purposes is taxed at a fixed monthly perquisite value depending on engine capacity and whether a driver is provided; purely official use isn't taxed if records are kept.

### Are gift vouchers from my employer taxable?

Gifts, vouchers and tokens up to ₹5,000 in a year are tax-free; above that, the full value is taxable.

### Are perquisites taxable in the new regime too?

Yes. Perquisites are part of salary in both regimes.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.