CBDT amends threshold of salaries and gross total income for certain perquisites

CBDT amends threshold of salaries and gross total income in respect of certain perquisites

CBDT has notified Income tax (Twenty Second Amendment) Rules, 2025 vide Notification No. 133/2025 dated 18.08.2025 amending the rules relating to taxability of certain perquisites in the hands of employees.

As per section 17(2)(iii) the value of any benefit or amenity granted or provided free of cost or at concessional rate is treated as perquisite in any of the following cases—

(a) by a company to an employee who is a director thereof

(b) by a company to an employee being a person who has a substantial interest in the company;

(c) by any employer (including a company) to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head “Salaries” (whether due from, or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds fifty thousand rupees.

A new Income Tax Rule 3C has been introduced to provide that the prescribed income under the head “Salaries” for the clause (c) above shall be four lakh rupees.

Rule 3D has been introduced to provide that any expenditure incurred by the employer on travel and stay abroad of the employee or any member of the family along with one attendant shall not be treated as perquisite subject to employee whose gross total income (GTI), as computed before including therein the said expenditure, does not exceed eight lakh rupee.

Download CBDT Notification No. 133/2025 Click Here >>

• Expenses of ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act.
• Compliance history of supplier can’t be used to invalidate genuine business transactions of buyer
• Reassessment quashed as AO issued notice u/s 148 instead of 153C as reopening was based on search
• Empanelment of CA/CMA /Legal firm for FEMA & other allied services at EPIL
• Individual contract for booking persons for participation in event not event management liable to service tax