Employer-provided car? Your taxable salary impact has changed significantly. Here is a clear comparison and taxpayer impact analysis:
📊 Perquisite Value Comparison – Old vs New
| Particulars | Old Income-tax Act, 1961 (Rule 3) | New Income-tax Act (Proposed) | Increase |
|---|---|---|---|
| Car < 1.6 litre engine | ₹2,700 per month | ₹8,000 per month | 🔺 ₹5,300 |
| Car > 1.6 litre engine | ₹3,300 per month | ₹10,000 per month | 🔺 ₹6,700 |
👉 Increase of almost 3 times
💼 What this Means for Taxpayers
Earlier (Old Act):
Perquisite value was nominal
Tax impact was minimal
Employer-provided car was highly tax efficient
Now (New Act):
Higher perquisite value
Higher taxable salary
Higher tax liability for employees
🧾 Practical Example
If employee falls under 30% tax bracket
Earlier tax saved on perquisite:
₹2,700 × 12 × 30% = ₹9,720
Now tax saved:
₹8,000 × 12 × 30% = ₹28,800
🔺 Additional tax saved: ₹19,080 per year
☕ Professional Advisory
If you are receiving a company car, it is advisable to review your salary structure for tax optimisation.
For personalised tax planning assistance:
📞 +91 77602 52581
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