{"id":6986,"date":"2025-08-21T21:21:08","date_gmt":"2025-08-21T21:21:08","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/21\/major-relief-for-taxpayers-cbdt-hikes-income-threshold-for-tax-free-perquisites-in-salary-tax-news\/"},"modified":"2025-08-21T21:21:08","modified_gmt":"2025-08-21T21:21:08","slug":"major-relief-for-taxpayers-cbdt-hikes-income-threshold-for-tax-free-perquisites-in-salary-tax-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/21\/major-relief-for-taxpayers-cbdt-hikes-income-threshold-for-tax-free-perquisites-in-salary-tax-news\/","title":{"rendered":"Major Relief For Taxpayers: CBDT Hikes Income Threshold For Tax-Free Perquisites In Salary | Tax News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9519393\">\n<p><span class=\"jsx-3cea4b2331e41d4a\">Last Updated:<\/span><time class=\"jsx-3cea4b2331e41d4a\">August 21, 2025, 16:30 IST<\/time><\/p>\n<h2 id=\"asubttl-9519393\" class=\"jsx-ff263f4b724d470d jsx-1391054776 asubttl-schema\">The CBDT has inserted Rules 3C and 3D into the Income Tax Rules, raising the income threshold limits for availing specified tax-free perquisites, effective from April 1, 2025.<\/h2>\n<div class=\"jsx-f62078ffd315d67c artsharwrp\">\n<div id=\"artshare\" class=\"jsx-f62078ffd315d67c artshare\">\n<div class=\"jsx-f62078ffd315d67c stickdiv\">\n<div class=\"jsx-f62078ffd315d67c deskwrapstkdiv\">\n<div class=\"jsx-f62078ffd315d67c flwonstk\"><a href=\"https:\/\/news18.co\/gnps-en-btn\" target=\"_blank\" style=\"margin:0 12px 0 0\" class=\"jsx-f62078ffd315d67c\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/gogole-serarch-btn.svg\" alt=\"Click to add News18 as a preferred source on Google\" title=\"Click to add News18 as a preferred source on Google\" width=\"94px\" height=\"30px\" style=\"vertical-align:top\" class=\"jsx-f62078ffd315d67c\"\/><\/a><\/div>\n<div class=\"jsx-f62078ffd315d67c fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" class=\"jsx-f62078ffd315d67c lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-ff263f4b724d470d jsx-1391054776 amimg\"><img decoding=\"async\" alt=\"The revised provisions will take effect from April 1, 2025 (applicable for Assessment Year 2026-27).\" title=\"The revised provisions will take effect from April 1, 2025 (applicable for Assessment Year 2026-27).\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-ff263f4b724d470d jsx-1391054776\"\/><\/p>\n<p>The revised provisions will take effect from April 1, 2025 (applicable for Assessment Year 2026-27).<\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\">The Central Board of Direct Taxes (CBDT) has notified a significant change to the Income Tax Rules, 1962, effectively widening the scope of tax-free perquisites available to salaried employees. Through a notification issued on August 18, 2025, the CBDT has inserted Rules 3C and 3D into the Income Tax Rules, raising the income threshold limits for availing specified tax-free perquisites, effective from April 1, 2025.<\/p>\n<p id=\"1\" class=\"story_para_1\">Under the new framework, the eligibility limits have been increased as follows:<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li>For specified employees, the threshold has been enhanced from Rs 50,000 to Rs 4 lakh.<\/li>\n<li>For overseas medical treatment, the threshold has been raised from Rs 2 lakh to Rs 8 lakh.<\/li>\n<\/ul>\n<p id=\"3\" class=\"story_para_3\">It is important to note that these thresholds relate to the employee\u2019s salary or gross total income eligibility, and not to the monetary value of the perquisites themselves. In other words, employees with income up to these revised levels will be able to avail the specified perquisites without attracting tax.<\/p>\n<p id=\"4\" class=\"story_para_4\">These new limits were introduced in the Finance Act, 2025, via a notification in the India e-Gazette, and will take effect from April 1, 2025 (AY 2026-27).<\/p>\n<p id=\"5\" class=\"story_para_5\"><strong>When Will The New Rules Apply?<\/strong><\/p>\n<p id=\"6\" class=\"story_para_6\">The revised limits will come into effect from April 1, 2025, and will be applicable for the assessment year 2026-27 onwards. This means taxpayers can avail the enhanced exemption thresholds while filing their returns for income earned during FY 2025-26.<\/p>\n<p id=\"7\" class=\"story_para_7\">Tax experts say the move will particularly benefit mid-level professionals and employees in sectors where perquisites form a key part of the compensation structure, making the overall tax regime more equitable for salaried classes.<\/p>\n<p id=\"8\" class=\"story_para_8\"><strong>What Are Perquisites?<\/strong><\/p>\n<p id=\"9\" class=\"story_para_9\">Tax-free perquisites, such as employer-provided medical treatment, rent-free housing or other specified benefits, are a key component of compensation packages. Until now, the lower thresholds meant that even modestly earning employees often fell outside the benefit bracket. By aligning the limits with current salary structures, the government has provided substantial relief to the salaried class, especially mid-level professionals and employees posted abroad.<\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"authorimg\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2025\/07\/WhatsApp-Image-2025-07-08-at-16.46.30-2025-07-4288ce65f2e878c717819ce8b60fc7c8.jpeg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/mohammad-haris-21410.html\" class=\"jsx-95088aad1b3c53cd atamail\">Mohammad Haris<\/a><\/p>\n<p>Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-ff263f4b724d470d jsx-1391054776 artcta\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:29px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:29px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\"><span data-olk-copy-source=\"MessageBody\"><a href=\"https:\/\/news18.co\/gnps-en\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to add News18 as your preferred news source on Google, <\/span>Stay updated with all the latest business news, including\u00a0<a href=\"https:\/\/www.news18.com\/business\/markets\/\">market trends<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/topics\/stocks-to-watch\/\">stock updates<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>, IPO,\u00a0<a href=\"https:\/\/www.news18.com\/business\/banking-finance\/\">banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates. Also <span data-olk-copy-source=\"MessageBody\">Download the\u00a0<a href=\"https:\/\/onelink.to\/eng-article-eop\">News18 App<\/a> to stay updated.<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"jsx-ff263f4b724d470d jsx-1391054776 brdcrmb\"><a href=\"https:\/\/www.news18.com\/\">News<\/a>  <a href=\"https:\/\/www.news18.com\/business\/\">business<\/a> \u00bb  <a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>  <span class=\"brdout\"> Major Relief For Taxpayers: CBDT Hikes Income Threshold For Tax-Free Perquisites In Salary<\/span><\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-ff263f4b724d470d jsx-1391054776 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/business\/tax\/major-relief-for-salaried-taxpayers-cbdt-hikes-income-threshold-for-tax-free-perquisites-in-salary-ws-l-9519393.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:August 21, 2025, 16:30 IST The CBDT has inserted Rules 3C and 3D into the Income Tax Rules, raising the income threshold limits for availing specified tax-free perquisites, effective from April 1, 2025. The revised provisions will take effect from April 1, 2025 (applicable for Assessment Year 2026-27). The Central Board of Direct Taxes&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2905,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-6986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/6986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=6986"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/6986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/2905"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=6986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=6986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=6986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}