Perquisites - Use of Moveable Assets - (New) Rule 15(5)(a) / (Old) Rule 3(7)(vii)

Taxable perquisite for use of employer movable assets is computed by cost, rent paid, and employee contribution.

Use of an employer's movable asset by an employee or the employee's family is a taxable perquisite. Under the Income Tax Act, 2025, the value is computed at 10% of the cost of the asset or the employer's rent paid, reduced by any amount paid by the employee, with exclusions for assets outside the rule and for laptops, computers, tablets and mobile phones. Under the Income Tax Act, 1961, the taxable value is 10% per annum of actual cost or hire charges, reduced by employee payment, with laptops and computers excluded.