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figment global solutions pvt. ltd.
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Global Solutions Pvt. Ltd.

admin | Posted On | April 2, 2026

Comparative Analysis – Valuation of Salary Perquisites

Comparative Analysis – Valuation of Salary Perquisites

(Rule 3 of Income-tax Rules, 1962 vs Rule 15 of Income-tax Rules, 2026)

 

  1. 🔹 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

 

  1. 🏠 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

 

  1. 🏨 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

 

  1. 🚗 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

 

  1. 👨‍🔧 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

 

  1. 🏫 Education Facility
Particulars Old Rule New Rule Change
Exemption limit ₹1,000 per month per child ₹3,000 per month per child Increased limit

 

  1. 🍽️ 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

 

  1. 🎁 Gifts 
Particulars Old Rule New Rule Change
Exemption limit ₹5,000 p.a. ₹15,000 p.a. Increased limit

 

  1. 💰 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

 

  1. 💳 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

 

  1. 📦 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