Non-Taxable Perquisites

Non-taxable perquisites are benefits provided by an employer to an employee that are exempt from income tax, either fully or up to a specified limit. These exemptions are granted under various provisions of the Income Tax Act to promote employee welfare and reduce the tax burden on certain benefits. Examples include meal vouchers within prescribed limits, house rent allowance (HRA) subject to conditions, employer’s contribution to provident fund up to specified limits, and medical reimbursements for approved treatments. Example: If an employer provides food coupons worth ₹2,500 per month, the amount is exempt from tax as a non-taxable perquisite within the permissible limit