Comparison of Section 17 "Perquisite" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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.... date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause 17 forms part of the Bill's Part on Salaries and establishes the meaning of "perquisite" for the purposes of taxation under the head Salaries. The clause enumerates inclusions (sub-section (1)), exclusions (sub-section (2)), a limited special rule (sub-section (3)), and definitions (sub-section (4)). The text provides limited definitional guidance for key terms such as "fair market value," "family" (by reference to Schedule III Note 2), "gross total income" (by reference to section 122(10)), "hospital," "option," "specified security," and "sweat equity shares." Methods of computation and several operational aspects are left to be prescribed ....

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....delines; portions of employer-paid health insurance premiums under schemes approved for section 30(c); employer payments of employee-paid health insurance premiums under schemes approved for section 126; employer expenditure on use of a vehicle for commute between residence and office; employer expenditure on medical treatment abroad, travel and stay abroad for treatment, and travel and stay of one attendant-subject to conditions in subsection (3). Clause 17(3) conditions the exclusions in sub-clause (2)(f): medical treatment and stay abroad excluded only to the extent permitted by the Reserve Bank of India; travel exclusion applies only in relation to employees whose gross total income (computed before including the expenditure) does not ....

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....n employee. That accommodation's value must be computed as a perquisite under clause (a) in the manner prescribed. (Valuation method: Not stated in the document.) * Example 2: A company allots sweat equity shares to an employee at a discount. Clause (d) treats the fair market value on exercise date less amounts paid/recovered from the employee as a perquisite. (Computation specifics: Not stated in the document.) * Example 3: An employer pays an employee's hospital bill incurred at a government hospital. Clause (2)(b)(i) excludes such a payment from perquisite. (Limits or documentation required: Not stated in the document.) Interplay Clause 17 cross-references other statutory provisions-section 122(10) for gross total inco....

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....l impact: "as may be prescribed" signals explicit delegated-legislation power and may be read as emphasising reliance on future rules; "as prescribed" in the Bill conveyed a similar idea but the shift may be stylistic and reinforces the expectation of rules to prescribe methods. * Guidance/approval language in medical approvals: Sub-section (2)(b)(ii) in the Bill referred to hospitals approved "having regard to such guidelines as specified"; the Act refers to approval "having regard to such guidelines as may be issued in this behalf." Practical impact: the Act expressly contemplates guidelines to be issued (i.e., an enabling formulation), thereby clarifying the administrative mechanism for approvals and potentially expanding administrativ....