Breaking Tax Alert: Company Car Perks Set to Increase Tax Burden for Salaried Employees Draft Income Tax Rules 2026 propose significant changes in company car valuation, potentially raising tax liability for employees. Under the new rules, individuals using company cars partly for personal purposes will face higher taxable perquisites. For an employee with a Rs 15 lakh salary, this translates to an additional tax outgo of Rs 4,352 annually. The proposed regulations fix the taxable perquisite at Rs 5,000 monthly for a company car with fuel and maintenance covered by the employer. An additional Rs 3,000 is added if a driver is provided, bringing the total annual taxable amount to Rs 96,000. This change applies uniformly across both old and new tax regimes, affecting employees' overall tax calculations.
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