Perquisites Valuation Calculator
Calculate the taxable value of your employer-provided perks like Rent-Free Accommodation (RFA) and Motor Cars based on the latest Income Tax rules (Sept 2023 updates).
Perquisite Details
Includes Basic, DA (forming part of retirement), Bonus, Commission, and taxable allowances.
Accommodation Provided
Motor Car Provided
Assuming car is owned/hired by employer and used for both official and personal purposes.
Total Taxable Perquisite Value
₹1,72,400
This amount will be added to your taxable income.
Net RFA Value
₹1,40,000
Base: ₹1,20,000 + Furn: ₹20,000
Motor Car Value
₹32,400
For 12 months usage
Perquisite Breakdown
Understanding Perquisites Valuation
Perquisites are fringe benefits provided by an employer to an employee. While they are not paid in cash, they hold monetary value and are taxable under the head "Income from Salary" as per the Income Tax Act, 1961.
Rent-Free Accommodation (New Rules)
Effective September 1, 2023, the CBDT reduced the valuation rates for RFA. For employer-owned properties, the rates are now 10%, 7.5%, or 5% of salary based on city population (down from 15%, 10%, 7.5%). For leased properties, it is the lower of actual rent or 10% of salary (down from 15%).
Motor Car Valuation
If a company car is used for both official and personal purposes, a flat monthly rate is added to your income. It is ₹1,800 for small cars (≤1.6L) and ₹2,400 for large cars (>1.6L). A chauffeur adds ₹900 per month to this valuation.
How it impacts your tax
The total perquisite value calculated is added to your Gross Salary. Your employer will deduct TDS on this total amount. Therefore, receiving a perquisite increases your tax liability, even though you didn't receive the cash directly.
Frequently Asked Questions
What are perquisites in salary?
Perquisites (or 'perks') are additional benefits provided by an employer to an employee, over and above the regular salary. Examples include rent-free accommodation, company cars, and interest-free loans. These are taxable under the Income Tax Act.
What are the new rules for Rent-Free Accommodation (RFA) from Sept 2023?
The CBDT revised RFA valuation rules effective Sept 1, 2023. For employer-owned properties, the valuation rates were reduced: 10% of salary for cities with >40L population, 7.5% for 15L-40L, and 5% for <15L. For leased properties, it is now the lower of 10% of salary or actual lease rent.
What is included in 'Salary' for RFA calculation?
For RFA valuation, 'Salary' includes Basic Pay, Dearness Allowance (if it forms part of retirement benefits), Bonus, Commission, Fees, and all other taxable allowances. It excludes employer's PF contribution, exempt allowances, and the value of other perquisites.
How is a company car taxed?
If a car is owned or hired by the employer and used for both official and personal purposes, the taxable perquisite is ₹1,800/month (for engines up to 1.6L) or ₹2,400/month (for engines above 1.6L). If a chauffeur is provided, an additional ₹900/month is added.
What if the employer recovers some rent from me?
If your employer deducts a nominal rent from your salary for the accommodation, this amount is subtracted from the calculated gross perquisite value to arrive at the net taxable RFA value.