Perquisite Valuation Calculator
Value the taxable perquisite for rent-free or concessional company accommodation — owned or leased, furnished or not — live on one screen.
Perquisite valuation breakdown
Get your salary perquisites reviewed by a CA
We compute Form 12BA perquisites accurately and optimise your salary structure.
Disclaimer: Indicative estimate for private-sector salaried employees under Rule 3 (amended w.e.f. AY 2024-25). Government employees, hotel accommodation and remote-site housing follow separate rules. Verify with your employer's Form 12BA.
The 2023 change to rent-free accommodation
When an employer provides a house rent-free or at a concessional rent, the value is a taxable perquisite added to your salary. Effective AY 2024-25, the CBDT amended Rule 3 to lower the valuation rates for employer-owned accommodation — from 15/10/7.5% to 10/7.5/5% — and re-based the population tiers on the 2011 census. Lower rates mean a smaller perquisite and less tax for most employees.
How the perquisite is valued
The method depends on who owns the house. For employer-owned homes it is a percentage of salary keyed to city size; for leased homes it is the lower of the actual lease rent or 10% of salary. Furnished homes add a furniture component, and any rent you actually pay is deducted.
| City above 40 lakh | 10% of salary |
| City 15 – 40 lakh | 7.5% of salary |
| City below 15 lakh | 5% of salary |
| Actual lease rent paid | whichever |
| 10% of salary | is LOWER |
Worked examples
Both examples use a salary of ₹12,00,000 for the perquisite, unfurnished, with no rent recovered from the employee.
Key terms explained
Salary for perquisite
Includes basic pay, dearness allowance (if it enters retirement benefits), bonus, commission and all taxable allowances — but excludes exempt allowances, other perquisites and employer PF contributions.
Population tier
For owned homes the rate depends on the city's population per the 2011 census — 10% above 40 lakh, 7.5% for 15–40 lakh, and 5% below 15 lakh.
Furniture value
If furnished, add 10% per year of the original cost of employer-owned furniture, or the actual hire charges if the furniture is rented from a third party.
Government employees
Central and state government employees are valued on the licence-fee basis fixed by the government, not the percentage-of-salary method used for private employers.
How is rent-free accommodation valued?
For accommodation owned by the employer, at 10% of salary in cities with a population above 40 lakh, 7.5% where the population is between 15 lakh and 40 lakh, and 5% elsewhere, based on the 2011 census. Where the employer leases the accommodation, the value is the lower of the actual rent and 10% of salary.
What counts as salary for perquisite valuation?
Basic pay, dearness allowance forming part of retirement benefits, bonus, commission, and all taxable allowances — but not the value of perquisites themselves, employer contributions to provident fund, or any lump-sum payment such as gratuity or leave encashment.
How is a company car taxed?
By a prescribed monthly amount depending on engine capacity and whether the employer bears running expenses and provides a driver. Where the car is used wholly for official purposes and proper records are kept, the perquisite value is nil.
How is an interest-free loan from the employer valued?
At the SBI lending rate for a comparable loan as on the first day of the year, applied to the maximum monthly outstanding balance, less any interest actually charged. Small loans up to ₹20,000 and loans for specified medical treatment are exempt.
Are perquisites taxed under the new regime?
Yes. Perquisites are part of salary and are taxable under both regimes. Only a few exemptions are withdrawn under the new regime, and those relate mainly to allowances rather than perquisites.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.