Exemption under new tax regime

Hi Amanullah! Great question about perquisites under the new tax regime.

🚗 Perquisite on Motor Car — Is It Exempt Under New Tax Regime?

Key points:

• The new tax regime (Section 115BAC) offers lower tax rates but removes most exemptions and deductions, except a few specified ones.

• Perquisites like motor car provided by employer are fully taxable under both old and new regimes.

• There is no exemption specifically for employer-provided cars under the new regime.

How is motor car perquisite valued?

• If employer owns the car and provides it: Perquisite value depends on engine capacity & usage (official/personal). The value is computed as per Income Tax Rules (Rule 3 of Income Tax Rules).

• If employee owns the car but employer pays for its use: Employer reimbursements or perquisite valuation is generally based on actuals or valuation rules.

• If car used for official + personal purposes, only the personal use part is treated as taxable perquisite.

Summary Table:

✅ Conclusion:

• No exemption for car perquisites under new tax regime.

• Perquisite value to be added to income and taxed as per slab rates under new regime.