New Perquisite Tax Rules: Govt Sets ₹4 Lakh Salary & ₹8 Lakh Income Thresholds, know details

New Perquisite Tax Rules: Govt Sets ₹4 Lakh Salary & ₹8 Lakh Income Thresholds, know details

New Delhi: Central Board of Direct Taxes (CBDT) under the Ministry of Finance has issued a new notification introducing important changes to the taxation of perquisites (non-salary benefits) provided by employers.

The new amendments are called the Income-tax (Twenty Second Amendment) Rules, 2025, and were notified on 18th August 2025 through the official Gazette of India.

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Under the new rules, two specific income thresholds have been fixed for calculating and exempting perquisite tax:

• Rule 3C: For the purpose of Section 17(2)(iii)(c) of the Income-tax Act, the minimum “salary” income has been fixed at ₹4 lakh. This means while calculating the taxable value of certain perquisites (like rent-free accommodation, car facilities, etc.), the base salary considered will not be less than ₹4 lakh.
• Rule 3D: For the purpose of the proviso to Section 17(2)(vi), the maximum gross total income has been fixed at ₹8 lakh. This implies that if an employee’s total annual income is below ₹8 lakh, certain perquisites provided by the employer may be exempt from tax.

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In simple terms, the government has fixed income limits:

• ₹4 lakh is the minimum salary for perquisite tax calculation.
• ₹8 lakh is the “Gross Total Income” threshold which some perquisites will not be taxed.

These new rules will come into force immediately from the date of their publication in the Official Gazette of India, i.e, 18th August 2025.