Proposed Change in Tax-Free Perquisites for Employee Travel in the Income Tax Bill, 2025

Rashmi | Last updated: 19 March 2025

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The proposed Income Tax Bill, 2025, clarifies tax-free perquisites for employee travel. Previously, only employer-provided vehicles for commuting were clearly tax-free, leading to ambiguity with reimbursements. The new bill expands this to cover any employer expenditure on employee commutes, including direct payments for cabs or reimbursements for travel expenses. This aims to reduce disputes and provide greater certainty for both employees and employers, though businesses will need robust documentation.

The proposed Income Tax Bill, 2025 introduces a key change in how tax-free perquisites related to employee travel are defined. This change aims to provide more clarity and reduce legal disputes regarding employer-funded transportation expenses. What Was the Earlier Rule? Under the existing Income

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1 Year PLAN

1999

(Excl. of GST ₹359)

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3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Rashmi

business

I am a Chartered Accountant with over 2 decades of experience in Auditing, Taxation, Accounting, Due diligence. I am currently a Managing Partner at RRL Global Services. I can be reached at rrlglobal @ yahoo.com or @ 9811757230

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