Perquisites - Education Facility - (New) Rule 15(4) / (Old) Rule 3(5)

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....sp;These benefits are treated as taxable perquisites, but with a small exemption threshold. Case (a): Education provided through an outside institution Taxable Perquisite Value = Actual expenditure incurred by employer Minus Amount recovered from employee Case (b): Institution owned/maintained by employer Exempt Perquisite Value = where the cost of such educa....

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....ed/maintained by employer Free education in another institution because of job Who runs the institution? Independent third party Employer itself Third party (linked to employment benefit) Basis of valuation Actual expenditure incurred by employer Comparable cost in similar institution in locality Comparable cost in similar institution in locality Deduc....

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....nt paid by the employer to discharge an obligation that would otherwise have been payable by the employee is treated as a taxable perquisite. [ Section 17(1)(f) ] Under the Income tax Act, 1961 [ Upto 31.03.2026 ] Valuation of Free or Concessional Education Facility [Rule 3(5) of the Income Tax Rule, 1962] Where the educational facilities are provided • in an educat....