ARTICLE · 20 OCTOBER 2025

Revised Thresholds For Perquisite Valuation: A Major Relief For Salaried Employees

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In August 2025, the CBDT issued Notification No. 133/2025, introducing the Income Tax (22nd Amendment) Rules, 2025. The amendment inserted Rule 3C and Rule 3D, substantially enhancing the exemption limits for perquisites...

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In August 2025, the CBDT issued Notification No. 133/2025, introducing the Income Tax (22nd Amendment) Rules, 2025. The amendment inserted Rule 3C and Rule 3D, substantially enhancing the exemption limits for perquisites (non-monetary benefits) under Section 17 of the Income-tax Act, 1961. The changes take effect from April 1, 2025.

The amendment takes effect on April 1, 2025.

Provision	Old limit	New limit
Rule 3C - Salary threshold for perquisites	INR 50,000	INR 4,00,000
Rule 3D - Gross total income threshold for medical treatment abroad	INR 2,00,000	INR 8,00,000

Rule 3C - Salary threshold of "specified employee" u/s 17(2)(iii)(c)

Employees whose salary exceeds INR 4 lakh will be considered as "specified employee".

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