BIG TAX RELIEF & UPDATE for MIDDLE CLASS SALARIED EMPLOYEES
Two important changes affect perquisites under Section 17(2) of the IT Act:
Rule 3C – Salary Threshold for Perqs
✅ Earlier: Relief applied only if salary ≤ ₹50,000 p.a. (an archaic limit, almost no one benefited).
✅ Now: Raised to ₹4,00,000 p.a.
✅ Employees with salary ≤ ₹4L can enjoy exemption on perquisites like:
• Rent-free or concessional accommodation
• Motor car facility
• Domestic help (sweeper, watchman, gardener, attendant)
• Gas, electricity, water supplied by employer
• Educational & medical facilities
• Free meals, concessional travel, gifts & vouchers, credit card bills etc.
Rule 3D – Gross Total Income Ceiling
✅ Applies to proviso (vi) of Section 17(2).
✅ Now, exemption on specified securities / sweat equity shares allotted free or at concessional rate will be available only if GTI ≤ ₹8,00,000.
Note: Earlier, relief was meaningless due to the ₹50k cap. Now, exemptions are real for junior staff, entry-level employees & middle-income taxpayers.
