The new Perquisites rule - Main changes - Summary

Last updated: 24 December 2009

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The new Perquisites rules have been notified and the main changes are under perks for Car/ Driver and for ESOP Schemes. The same have been summarized herein for quick reference. For specific conditions, explanations, etc. and other minor changes,

1. Perks for Car/ Driver

Usage Purpose	Perk Value
I. If Motor Car is Owned by employer & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes only	No perquisite, if specified conditions satisfied.
Private purposes only	Actual expense incurred by employer Add: 10% p.a of Actual Cost of Car or Hire charges of Car Add: Salary to Driver Less: amount recovered from employee
Partly Official & partly Private purposes.	Upto 1600CC : Rs 1,800 p.m Above 1600CC : Rs. 2,400 p.m Add: If driver provided : Rs.900 p.m Less: amount recovered from employee
II. If Motor Car is Owned by employee & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes only	No perquisite, if specified conditions satisfied.
Private purposes only	Actual expense incurred by employer as Less : Amount recovered from employee.
Partly Official & partly Private purposes	Actual expense incurred by employer Less: amount recovered from employee Less: Upto 1600CC : Rs. 1,800 p.m Above 1600CC : Rs. 2,400 p.m Less: If driver provided : Rs.900 p.m
III. If Motor Car is Owned by employer & running and maintenance expenses are incurred by Employee
Official purposes only	No perquisite, if specified conditions satisfied.
Private purposes only	10% p.a of Actual Cost of Car or Hire charges of Car Add: Salary to Driver (if paid by employer) Less: amount recovered from employee
Partly Official & partly Private purposes.	Upto 1600CC : Rs 600 p.m Above 1600CC : Rs 900 p.m Add: If driver provided : Rs.900 p.m Less: amount recovered from employee
IV. If Any other Automotive Conveyance is Owned by employee & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes	only No perquisite, if specified conditions satisfied.
Partly Official & partly Private purposes.	Actual expenditure incurred by employer Less: amount recovered from employee Less: Amount for Official use Rs.900 p.m

2. Perks for ESOP Schemes (at the time of exercising the option)

a) For Listed equities

Perk Value of listed sweat equity Shares allotted or transferred free of cost or at concessional rate shall be average of opening and closing price of shares listed on stock exchange on date of exercise of option less any amount recovered from the employee.

b) For unlisted equities

Perk Value of unlisted sweat equity shares and other Security allotted or transferred free of cost or at concessional rates shall be the fair market value as determined by the category-I Merchant Banker on the date of exercise of Option or any earlier date, not being earlier than 180 days than the date of exercising, less amount recovered from the employee.

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