Comparative Analysis – Valuation of Salary Perquisites
(Rule 3 of Income-tax Rules, 1962 vs Rule 15 of Income-tax Rules, 2026)
- 🔹 Overall Framework
| Particulars | Old Rule (1962) | New Rule (2026) | Key Change |
| Governing Rule | Rule 3 | Rule 15 | Renumbered |
| Terminology | Previous Year | Tax Year | Alignment with new Act |
| Structure | Narrative format | Table-based (I–IV) | Improved clarity |
- 🏠 Residential Accommodation
| Particulars | Old Rule | New Rule | Change |
| Govt accommodation | License fee basis | Same | No change |
| Non-govt owned | 10% / 7.5% / 5% of salary | Same | No change |
| Leased accommodation | Lower of rent or 10% salary | Same | No change |
| Furnished accommodation | 10% of furniture cost (within table) | Separate clause (2)(e) | Structural change only |
| CII cap | Applicable | Retained with clarity | No change |
- 🏨 Hotel Accommodation
| Particulars | Old Rule | New Rule | Change |
| Valuation | 24% of salary or actual | Same | No change |
| Transfer exemption (15 days) | Available | Available | No change |
- 🚗 Motor Car Perquisite (Major Change)
| Particulars | Old Rule | New Rule | Change |
| Mixed use (≤1.6L engine) | ₹1,800 p.m. | ₹5,000 p.m. | Significant increase |
| Mixed use (>1.6L engine) | ₹2,400 p.m. | ₹7,000 p.m. | Significant increase |
| Employee bears cost | ₹600 / ₹900 p.m. | ₹2,000 / ₹3,000 p.m. | Increase |
| Chauffeur | ₹900 p.m. | ₹3,000 p.m. | Increase |
| Electric vehicles | Not specified | Specifically covered | Clarification |
- 👨🔧 Basic Amenities (Sweeper, Utilities, etc.)
| Particulars | Old Rule | New Rule | Change |
| Domestic help | Actual cost | Same | No change |
| Gas, electricity, water | Actual / manufacturing cost | Same | No change |
- 🏫 Education Facility
| Particulars | Old Rule | New Rule | Change |
| Exemption limit | ₹1,000 per month per child | ₹3,000 per month per child | Increased limit |
- 🍽️ Free Food & Beverages
| Particulars | Old Rule | New Rule | Change |
| Exemption | ₹50 per meal | ₹200 per meal | Increased limit |
| New tax regime | Not relevant | Not available u/s 115BAC | Restriction |
- 🎁 Gifts
| Particulars | Old Rule | New Rule | Change |
| Exemption limit | ₹5,000 p.a. | ₹15,000 p.a. | Increased limit |
- 💰 Interest-Free / Concessional Loan
| Particulars | Old Rule | New Rule | Change |
| Threshold exemption | ₹20,000 | ₹2,00,000 | Significant increase |
| Medical loan | Exempt | Restricted if reimbursed by insurance | Tightened provision |
- 💳 Credit Card & Club Expenses
| Particulars | Old Rule | New Rule | Change |
| Credit card expenses | Taxable unless official | Same | No change |
| Club membership | Allowed with conditions | Corporate membership clarified | Clarification |
- 📦 Movable Assets
| Particulars | Old Rule | New Rule | Change |
| Use of assets | 10% p.a. of cost | Same | No change |
| Transfer of assets | Depreciated value | Same | No change |
| Exclusions | Limited clarity | Explicit (laptops, mobiles, etc.) | Clarification |