Under the Income-tax Act, 2025 read with the Income-tax Rules, 2026, the value of the perquisite…

Under section 17(1)(e) of the Income-tax Act, 2025 read with rule 15(5)(a), Table IV, Sl. No. 7 of the Income-tax Rules, 2026 (formerly rule 3(7)(vii) of the Income-tax Rules, 1962), the value of the benefit from the use of such a movable asset belonging to the employer is 10% per annum of its actual cost (or the rent or charge paid or payable by the employer, if the asset is hired), reduced by any amount paid or recovered from the employee for such use. The rate is applied per annum, not per month, so the two per-month options are wrong, and 20% per annum is not the prescribed rate for use of such an asset.