{"id":29734,"date":"2025-08-25T00:20:42","date_gmt":"2025-08-24T18:50:42","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29734"},"modified":"2026-01-07T23:52:34","modified_gmt":"2026-01-07T18:22:34","slug":"free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/","title":{"rendered":"Free Perquisite Limits Raised to INR 4  &#038; INR 8 Lakh"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d7b59100dca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d7b59100dca\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Good_News_for_Salaried_Taxpayers-_New_Rules_for_Salaried_Employees\" title=\"Good News for Salaried Taxpayers- New Rules for Salaried Employees \u00a0\">Good News for Salaried Taxpayers- New Rules for Salaried Employees \u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Free_Perquisite_Limits_Raised_Free_Perquisite_Limits_Raised_to_INR_4_Lakh_and_INR_8_Lakh\" title=\"Free Perquisite Limits Raised: Free Perquisite Limits Raised to INR 4 Lakh and INR 8 Lakh\">Free Perquisite Limits Raised: Free Perquisite Limits Raised to INR 4 Lakh and INR 8 Lakh<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#What_is_perquisite_taxation\" title=\"What is perquisite taxation?\">What is perquisite taxation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Taxable_only_for_specified_employees_as_per_Rule_3\" title=\"Taxable only for specified employees (as per Rule 3):\">Taxable only for specified employees (as per Rule 3):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#What_It_Means_for_Specified_Employees\" title=\"What It Means for Specified Employees\">What It Means for Specified Employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Who_is_a_Specified_Employee\" title=\"Who is a Specified Employee?\">Who is a Specified Employee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Overseas_Medical_Treatment_Exemption_Rule_3D\" title=\"Overseas Medical Treatment Exemption (Rule 3D)\">Overseas Medical Treatment Exemption (Rule 3D)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Legal_Basis\" title=\"Legal Basis\">Legal Basis<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Practical_Example_How_the_New_Thresholds_Work\" title=\"Practical Example : How the New Thresholds Work\">Practical Example : How the New Thresholds Work<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Case_1_Employee_earning_INR_35_lakh_below_INR_4_lakh_threshold_%E2%80%93_Employee_A_Salary_INR_35_lakh\" title=\"Case 1: Employee earning INR 3.5 lakh (below INR 4 lakh threshold) &#8211; Employee A (Salary: INR 3.5 lakh)\">Case 1: Employee earning INR 3.5 lakh (below INR 4 lakh threshold) &#8211; Employee A (Salary: INR 3.5 lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Case_2_Employee_earning_INR_6_lakh_above_INR_4_lakh_but_below_INR_8_lakh-_Employee_B_Salary_INR_6_lakh\" title=\"Case 2: Employee earning INR 6 lakh (above INR 4 lakh but below INR 8 lakh)- Employee B (Salary: INR 6 lakh)\">Case 2: Employee earning INR 6 lakh (above INR 4 lakh but below INR 8 lakh)- Employee B (Salary: INR 6 lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Case_3_Employee_earning_INR_9_lakh_above_INR_8_lakh_%E2%80%93_Employee_C_Salary_INR_9_lakh\" title=\"Case 3: Employee earning INR 9 lakh (above INR 8 lakh) &#8211; Employee C (Salary: INR 9 lakh)\">Case 3: Employee earning INR 9 lakh (above INR 8 lakh) &#8211; Employee C (Salary: INR 9 lakh)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#New_RBI_rule_effective_from_April_1_2026_specifically_for_BSBD\" title=\"New RBI rule effective from April 1, 2026, specifically for BSBD\">New RBI rule effective from April 1, 2026, specifically for BSBD<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#Highlights_of_the_New_RBI_Rule\" title=\"Highlights of the New RBI Rule\">Highlights of the New RBI Rule<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/free-perquisite-limits-raised-to-inr-4-lakh-inr-8-lakh\/#In_summary_Why_the_Change\" title=\"In summary : Why the Change ?\">In summary : Why the Change ?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29062\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high.jpg\" alt=\"Tax Dept intensified scrutiny\" width=\"800\" height=\"492\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high-300x185.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/high-768x472.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Good_News_for_Salaried_Taxpayers-_New_Rules_for_Salaried_Employees\"><\/span><span style=\"color: #000080;\"><strong>Good News for Salaried Taxpayers- New Rules for Salaried Employees \u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Finance Act, 2025 raises tax-free salary perk limits to INR 4 lakh for specified employees and INR 8 lakh for overseas medical treatment, effective April 1, 2025. The Finance Act, 2025 has brought major relief for employees by raising the income thresholds for tax-free perquisites. Starting April 1, 2025 (AY 2026\u201327),<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Free_Perquisite_Limits_Raised_Free_Perquisite_Limits_Raised_to_INR_4_Lakh_and_INR_8_Lakh\"><\/span><span style=\"color: #000080;\"><strong>Free Perquisite Limits Raised: Free Perquisite Limits Raised to INR 4 Lakh and INR 8 Lakh<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Central Board of Direct Taxes notification raises income thresholds for tax-free perquisites under the Finance Act, 2025\u2014effective from April 1, 2025 (AY 2026\u201327). This change ensures that a wider section of middle-class salaried taxpayers can enjoy company-provided perks without additional tax liability.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_perquisite_taxation\"><\/span><span style=\"color: #000080;\"><strong>What is perquisite taxation?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Higher Tax-Free Thresholds at a Glance -U\/s 17(2) of the Income-tax Act, certain benefits provided by employers are taxed as \u201cperquisites.\u201d The Central Board of Direct Taxes has inserted Rules 3C and 3D into the <em>Income-tax Rules, 1962<\/em>, significantly enhancing the income thresholds that determine eligibility for tax-free perquisites:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Taxable_only_for_specified_employees_as_per_Rule_3\"><\/span><span style=\"color: #000080;\"><strong>Taxable only for <em>specified employees<\/em> (as per Rule 3):<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Use of car or other conveyance<\/li>\n<li>Services of sweeper, gardener, watchman, personal attendant<\/li>\n<li>Supply of gas, electricity, water<\/li>\n<li>Free\/low-cost education facilities<\/li>\n<li>Transport facility<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_It_Means_for_Specified_Employees\"><\/span><span style=\"color: #000080;\"><strong>What It Means for Specified Employees<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The term \u201cspecified employee\u201d refers to those earning above the prescribed salary threshold. Until now, anyone crossing INR 50,000 was subject to tax on many perquisites. With the new INR 4 lakh benchmark, employees below this limit can receive certain benefits\u2014like company-provided staff or non-cash facilities\u2014without them being taxed as income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_is_a_Specified_Employee\"><\/span><span style=\"color: #000080;\"><strong>Who is a Specified Employee?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>As explained by experts: A director-employee or An employee holding \u226520% voting power in the company or Any other employee whose salary income exceeds the prescribed threshold (now INR 4 lakh). Thus, employees earning below INR 4 lakh can receive these benefits tax-free, unless they fall in categories (1) or (2).<\/li>\n<li>Specified employees: Limit raised from INR 50,000 (unchanged since 2001) to INR 4 lakh. Employees earning up to INR 4 lakh will not be treated as \u201cspecified employees,\u201d.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Overseas_Medical_Treatment_Exemption_Rule_3D\"><\/span><span style=\"color: #000080;\"><strong>Overseas Medical Treatment Exemption (Rule 3D)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Overseas medical treatment: Limit raised from INR 2 lakh (unchanged since 1993) to INR 8 lakh. Those with gross total income up to INR 8 lakh can claim exemption on overseas medical treatment expenses. This update allows more individuals to access tax-free benefits such as:\n<ul>\n<li>Interest-free or concessional loans from employers,<\/li>\n<li>Employer-provided domestic help or children\u2019s education facilities,<\/li>\n<li>Company-funded overseas medical treatment and related travel.<\/li>\n<\/ul>\n<\/li>\n<li>The INR 4 lakh and INR 8 lakh figures are thresholds of salary\/gross total income to decide whether certain benefits can be excluded from perquisite taxation. They are not the value of the perquisites themselves. Earlier, only employees with gross total income \u2264INR 2 lakh could claim exemption for employer-funded overseas treatment and travel. This has now been raised to INR 8 lakh, subject to conditions:<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Treatment must be for the employee or a family member.<\/li>\n<li>Travel\/stay abroad covers the patient and one attendant only.<\/li>\n<li>Expenditure must comply with RBI\u2019s LRS cap (currently USD 250,000 per annum).<\/li>\n<li>If income exceeds INR 8 lakh, such expenditure will be taxed as a perquisite.<\/li>\n<li>The exemption for overseas medical treatment and related travel has also been liberalised: Key conditions remain:<\/li>\n<li>Treatment must be conducted abroad.<\/li>\n<li>Travel can include the patient plus one attendant.<\/li>\n<li>Expenses must comply with RBI\u2019s LRS cap (currently INR 250,000 per annum).<\/li>\n<li>Employees earning above INR 8 lakh will not qualify for this exemption.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Legal_Basis\"><\/span><span style=\"color: #000080;\"><strong>Legal Basis<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Implemented through Notification No. 133\/2025, dated 18 August 2025. Issued under Section 295 of the Income-tax Act, 1961 (delegated rule-making powers). These changes are subordinate legislation, not part of the Income-tax (Amendment) Bill, 2025 \u2014 hence not debated in Parliament. From AY 2026\u201327, employees earning up to INR 4 lakh escape taxation on certain perquisites, while those earning up to INR 8 lakh can receive tax-free overseas medical treatment. This long-awaited relief reduces the tax burden on lower and middle-income salaried taxpayers.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Practical_Example_How_the_New_Thresholds_Work\"><\/span><span style=\"color: #000080;\"><strong>Practical Example : How the New Thresholds Work<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Case_1_Employee_earning_INR_35_lakh_below_INR_4_lakh_threshold_%E2%80%93_Employee_A_Salary_INR_35_lakh\"><\/span><span style=\"color: #000080;\"><strong>Case 1: Employee earning INR 3.5 lakh (below INR 4 lakh threshold) &#8211; Employee A (Salary: INR 3.5 lakh)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Since the salary is below INR 4 lakh, the employee is not treated as a specified employee.<\/li>\n<li>This means certain perquisites like:\n<ul>\n<li>Interest-free\/concessional loans from the employer,<\/li>\n<li>Use of company staff (domestic help, sweeper, gardener, watchman),<\/li>\n<li>Free education facilities for children,<br \/>\nwill not be taxed in the employee\u2019s hands.<\/li>\n<\/ul>\n<\/li>\n<li>Additionally, if this employee needs overseas medical treatment, they can also claim exemption (since income is below INR 8 lakh).<\/li>\n<li>Result: Both regular perks and medical travel abroad can remain tax-free.<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Not a specified employee \u2192 can enjoy free education facilities, company-provided staff, etc. tax-free.<\/li>\n<li>Also eligible for tax-free overseas medical travel (since &lt;INR 8 lakh).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Case_2_Employee_earning_INR_6_lakh_above_INR_4_lakh_but_below_INR_8_lakh-_Employee_B_Salary_INR_6_lakh\"><\/span><span style=\"color: #000080;\"><strong>Case 2: Employee earning INR 6 lakh (above INR 4 lakh but below INR 8 lakh)- Employee B (Salary: INR 6 lakh)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Since the salary is above INR 4 lakh, the employee is classified as a specified employee.<\/li>\n<li>This means non-monetary perquisites like company-provided staff, education facilities, or interest-free loans will now be taxable.<\/li>\n<li>However, because the salary is still below INR 8 lakh, this employee can still claim exemption for overseas medical treatment and related travel (if provided by the employer).<\/li>\n<li>Result: Overseas medical perks can remain tax-free, but other company perks become taxable.\n<ul>\n<li>Treated as a specified employee \u2192 non-monetary perks (education, staff, etc.) become taxable.<\/li>\n<li>But still eligible for tax-free overseas medical treatment (since &lt;INR 8 lakh).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Case_3_Employee_earning_INR_9_lakh_above_INR_8_lakh_%E2%80%93_Employee_C_Salary_INR_9_lakh\"><\/span><span style=\"color: #000080;\"><strong>Case 3: Employee earning INR 9 lakh (above INR 8 lakh) &#8211; Employee C (Salary: INR 9 lakh)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Salary exceeds both limits.<\/li>\n<li>This employee will be treated as a specified employee and cannot claim overseas medical treatment exemption.<\/li>\n<li>Almost all employer-provided perquisites become taxable.<\/li>\n<li>Result: No major perquisite exemptions available.<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Treated as a specified employee \u2192 all non-monetary perks taxable.<\/li>\n<li>Overseas medical treatment exemption not available (&gt;INR 8 lakh).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"New_RBI_rule_effective_from_April_1_2026_specifically_for_BSBD\"><\/span><span style=\"color: #000080;\"><strong>New RBI rule effective from April 1, 2026<\/strong>, specifically for <strong>BSBD<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30915\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026.jpeg\" alt=\"New RBI rule effective from April 1, 2026\" width=\"1170\" height=\"1078\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026.jpeg 1170w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026-300x276.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026-1024x943.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026-768x708.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/New-RBI-rule-effective-from-April-1-2026-800x737.jpeg 800w\" sizes=\"(max-width: 1170px) 100vw, 1170px\" \/><\/p>\n<p>New RBI rule effective from April 1, 2026, specifically for Basic Savings Bank Deposit (BSBD) accounts. This is a significant move by RBI to promote financial inclusion and reduce costs for individuals with basic savings accounts. Effective Date : April 1, 2026.\u00a0Here\u2019s a summary of the key points mentioned:<\/p>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Highlights_of_the_New_RBI_Rule\"><\/span><span style=\"color: #000080;\"><strong>Highlights of the New RBI Rule<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong><span style=\"color: #000080;\">No Cash Deposit Fees :<\/span> <\/strong>BSBD account holders will not be charged for cash deposits at branches, ATMs, or through business correspondents.<\/li>\n<li><span style=\"color: #000080;\"><strong>Digital Banking Access : <\/strong><\/span>No restrictions on mobile and internet banking; these services must be provided to BSBD account holders.<\/li>\n<li><strong><span style=\"color: #000080;\">No Account Access Restrictions<\/span> : <\/strong>Banks cannot limit account access based on income or customer profile.<\/li>\n<li><strong><span style=\"color: #000080;\">Objective of Changes :<\/span> <\/strong>Improve convenience, reduce banking costs, and ensure financial inclusion.<\/li>\n<\/ol>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"In_summary_Why_the_Change\"><\/span><span style=\"color: #000080;\"><strong>In summary : Why the Change ?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The INR 50,000 (2001) and INR 2 lakh (1993) thresholds were outdated. Inflation, higher incomes, and rising medical costs had eroded their relevance. Finance Act, 2025 modernises these provisions to align with current economic realities and extend relief to a wider section of salaried employees.<\/li>\n<\/ul>\n<ul>\n<li>Earlier, the threshold limits were set at INR 50,000 for specified employees and INR\u00a0 2 lakh for overseas medical treatment. These have now been significantly raised to INR\u00a0 4 lakh and INR\u00a0 8 lakh, respectively.<\/li>\n<li>It is important to note that the revised limits of INR 4 lakh and INR\u00a0 8 lakh refer to the employee\u2019s salary or gross total income threshold, which determines eligibility for exclusion of certain benefits\/amenities from perquisite taxation. These limits do not represent the monetary value of the perquisites themselves. With the new INR 4 lakh and INR 8 lakh thresholds, millions of salaried individuals stand to benefit through reduced taxable income, fairer exemptions, and enhanced relief for medical and welfare needs.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Good News for Salaried Taxpayers- New Rules for Salaried Employees \u00a0 Finance Act, 2025 raises tax-free salary perk limits to INR 4 lakh for specified employees and INR 8 lakh for overseas medical treatment, effective April 1, 2025. The Finance Act, 2025 has brought major relief for employees by raising the income thresholds for tax-free &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29734"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29734"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29734\/revisions"}],"predecessor-version":[{"id":30916,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29734\/revisions\/30916"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}