About the Perquisite Tax Calculator
What is the Perquisite Tax Calculator?
Benefits your employer provides — a rent-free house, a company car for personal use, a chauffeur — are perquisites taxed as part of your salary. Their taxable value is fixed by the Income-tax Rules, which were revised in 2023 (accommodation) and 2024 (cars).
Enter your salary for perquisite purposes, the city size, rent recovered, car type and whether a driver is provided. The calculator values each perquisite and shows the extra tax and monthly TDS.
How to use the Perquisite Tax Calculator
- Salary for Perquisite Purposes (₹ per year) (sample: 15,00,000)
- Rent-Free Accommodation from Employer (sample: City population above 40 lakh (10%))
- Rent Recovered from You (₹ per year) (sample: 60,000)
- Company Car Used Partly for Personal Purposes (sample: Engine up to 1.6 litres (₹5,000/month))
- Chauffeur Provided (sample: No)
- Your Income Tax Slab Rate (sample: 30%)
- Press Calculate Perquisite Tax (results also refresh as you type). The result card shows the Taxable Value of Perquisites, along with Rent-free accommodation perquisite, Car & driver perquisite, Extra tax on perquisites (incl. cess) and Monthly extra TDS.
Formula used
Housing perquisite = Salary × 10% / 7.5% / 5% − Rent recovered
- City bands = population above 40 lakh (10%), 15–40 lakh (7.5%), others (5%) as per the 2011 census
- Car (mixed use, employer pays costs) = ₹5,000/month up to 1.6 litres, ₹7,000/month above, plus ₹3,000/month for a driver
A car used only for official duties with proper records is not a taxable perquisite.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Salary for Perquisite Purposes (₹ per year) | 15,00,000 |
| Rent-Free Accommodation from Employer | City population above 40 lakh (10%) |
| Rent Recovered from You (₹ per year) | 60,000 |
| Company Car Used Partly for Personal Purposes | Engine up to 1.6 litres (₹5,000/month) |
| Chauffeur Provided | No |
| Your Income Tax Slab Rate | 30% |
| Result | Value |
|---|---|
| Taxable Value of Perquisites | ₹1,50,000 |
| Rent-free accommodation perquisite | ₹90,000 |
| Car & driver perquisite | ₹60,000 |
| Extra tax on perquisites (incl. cess) | ₹46,800 |
| Monthly extra TDS | ₹3,900 |
Tips for using the Perquisite Tax Calculator
- Perquisites are taxable in both regimes.
- Your employer includes perquisites in Form 12BA along with Form 16.
- Paying rent to the employer reduces the housing perquisite rupee for rupee.