The following perquisites are exempt in the hands of all
1. The value of hotel accommodation provided to employee
where the employee is provided such an accommodation for a period not exceeding 15 days on his transfer from
one place to another.
2. Accommodation provided to an employee working at a mining
site or an on-shore oil exploration site or a project execution site or a dam site or a power generation site
or an off-shore site satisfying the following conditions:
a. The site is of temporary nature
b. The plinth area of the accommodation is not exceeding 800
c. Location not less than 8 km away from local limits of any
municipality or cantonment board or is located in a remote area.
3. Allowing use of laptop and computers to the employee or
member of his household.
4. Telephone perquisite including mobile phone
5. Medical treatment provided to an employee or any member of
his family in any hospital maintained by the employer.
6. Reimbursement of expenses incurred by the employee on his
medical treatment or treatment of any member of his family:
Ø In any hospital maintained by government/local authority
or hospital approved by government for medical treatment of its employees
Ø In respect of the prescribed diseases or ailments in any
hospital approved by the Chief Commissioner.
7. Health Insurance premium paid by an employer in relation
to an employee, to effect or to keep in force an insurance on the health of such employee.
8. Reimbursement of premium paid by an employee to effect or
to keep in force an insurance on his health or the health of any member of his family.
9. Expenditure incurred by employer on medical treatment of
employee or any member of his family outside India if:
a. Expenditure is approved by the Reserve Bank of
b. Employee’s gross total income does not exceed
10. In any other case not covered by above, if bills are not
issued in the name of employee but paid by the employer.
11. The amount of any contribution to an approved
superannuation fund by the employer in respect of the assessee, to the extent of Rs.150000 or below. However,
the contribution to the extent above Rs.150000 it taxable as a perquisite.
Perquisites exempt in
general but taxable in the hands of specified employees
The following perquisites are not taxable in general but if the
same are taxable only in the hands of a specified employee:
1. Services of a sweeper, gardener, watchman or personal
attendant provided to employee engaged by the employer and salary is paid by the employer.
2. The value of supply of gas, electricity or water for
household consumption of employee, if the connection taken by the employer and the bills are paid by the
3. Provision of free or concessional educational facilities
for any member of household of the employee without charge or with charge if the payment is to be made by the
employer and made by the employer.
4. Motor car/conveyance provided to employee by
5. Transport facility provided to employee by transport
undertakings other than railways or airline