Glossary
Perquisite
A non-cash benefit from an employer — housing, employer PF/pension above a cap, stock options — taxable as salary income under the Income-tax Act 2025.
Perquisites cover benefits-in-kind that tax law treats as pay even though no cash changes hands directly. Examples: rent-free accommodation, a company car, or employer contributions to PF/pension/superannuation above the statutory cap.
The old §17(2)(vii)/(viia) employer-fund perquisite provisions now sit at §17(1)(h)/(i) of the Income-tax Act 2025, with the ₹7.5 lakh combined-contribution cap carried forward.
Why it matters now: assignment cost models that still cite §17(2) need updating to §17(1)(h). The cap amount is the same, but the section reference has changed and matters for filings.