India's April 1 tax rules change perks under both regimes
Starting April 1, 2026, new tax rules will shake up how employee perks are taxed in India.
Announced this March, these updates affect both old and new tax regimes, so if you're salaried, expect some changes to your take-home pay as certain benefits get taxed more.
Company cars taxed more, exemptions rise
Company cars are getting pricier tax-wise: for smaller engines (up to 1.6-liter), the taxable value jumps by ₹3,200 a month; a 1.8L SUV for mixed use (personal and official) will be valued at ₹7,000 a month, adding a chauffeur increases the taxable perquisite by ₹3,000 a month (up from ₹900) — an increase of ₹2,100 compared with the earlier ₹900.
On the brighter side, interest-free loan limits from employers go up to ₹2 lakh and meal voucher exemptions rise to ₹200 a meal. Gift and voucher exemptions also increase, now up to ₹15,000 a year.
As CA Nitin Kaushik puts it: Employees may see more taxes on fancy perks but get relief on basics.