Tax paid by employer on non-monetary perquisite - should I show it as my income?

Ans. to 1. is No.             

Thanks for your response.

You are welcome.            

I missed mentioning that I was confused due the a dropdown option in ITR utility. Under Allowances to the extent exempt u/s 10, one of the options is Sec 10(10CC)- Tax paid by employer on non-monetary perquisite, and it also mentions in the tooltip for these exempt allowances to "Ensure that it is included in the Total Gross salary". 

As form 16 has not included the amount, You need not add to gross salary. But if you wish to gross up the amount in salary, you have alternative to declare it under exemption. Both way, you are not hiding any income that need to be taxed.

Yes, you must include it as income. The tax your employer paid on your non-monetary perquisite is itself a perquisite under the Income Tax Act.

Here is how it works:
- When the employer pays TDS on perquisites under Section 192(1A), that tax payment is treated as an additional perquisite under Section 17(2) and gets added to your gross salary
- Your Form 16 Part B should already reflect this as a separate line item under Section 17(2) perquisites
- The total salary you report in ITR is the gross salary from Form 16 Part B, which already includes this employer-paid tax

What to check in your ITR:
- Pre-filled ITR pulls gross salary from Form 16, so the employer-paid TDS is already included if your employer reported it correctly
- Cross-check: Total of all components in Part B of Form 16 (salary + allowances + perquisites + employer-paid tax) should match the figure in Part A Schedule I
- The TDS credit in Form 26AS should cover both employee-paid and employer-paid portions ,  both are deposited to your PAN

Self-employed doctors and professionals face different perquisite rules. This [income tax guide for doctors and medical professionals](https://taxgarden.in/blog/income-tax-for-doctors-medical-professionals-india-ay-2026-27) explains how perquisites and professional deductions differ from the salaried employee treatment.