For tax year 2026-27, an employer provides a car with an engine of 1.5 litres and meets all running costs. The car is used wholly for official duties, and the employer keeps the required journey…

Under the motor-car table in rule 15 of the Income-tax Rules, 2026, a car used wholly for official purposes has no perquisite value if the employer maintains the journey records and certifies the official use. ₹5,000 a month is the value for a car of up to 1.6 litres used partly for private purposes with the employer bearing the costs; ₹7,000 is that value for a larger engine, and ₹2,000 applies where the employee bears the running costs.