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Posters have surfaced across Lucknow comparing the Samajwadi Party’s rule in Uttar Pradesh to Pakistan’s “Lyari Raj", targeting Akhilesh Yadav with a reference to its depiction in the film Dhurandhar. The development comes days after a separate political jibe by Parvesh Verma
The Central Board of Direct Taxes (CBDT) has notified a significant change to the Income Tax Rules, 1962, effectively widening the scope of tax-free perquisites available to salaried employees. Through a notification issued on August 18, 2025, the CBDT has inserted Rules 3C and 3D into the Income Tax Rules, raising the income threshold limits for availing specified tax-free perquisites, effective from April 1, 2025.
Major Relief For Taxpayers: CBDT Hikes Income Threshold For Tax-Free Perquisites In Salary
The Central Board of Direct Taxes (CBDT) has notified a significant change to the Income Tax Rules, 1962, effectively widening the scope of tax-free perquisites available to salaried employees. Through a notification issued on August 18, 2025, the CBDT has inserted Rules 3C and 3D into the Income Tax Rules, raising the income threshold limits for availing specified tax-free perquisites, effective from April 1, 2025.
Under the new framework, the eligibility limits have been increased as follows:
It is important to note that these thresholds relate to the employee's salary or gross total income eligibility, and not to the monetary value of the perquisites themselves. In other words, employees with income up to these revised levels will be able to avail the specified perquisites without attracting tax.
These new limits were introduced in the Finance Act, 2025, via a notification in the India e-Gazette, and will take effect from April 1, 2025 (AY 2026-27).
When Will The New Rules Apply?
The revised limits will come into effect from April 1, 2025, and will be applicable for the assessment year 2026-27 onwards. This means taxpayers can avail the enhanced exemption thresholds while filing their returns for income earned during FY 2025-26.
Tax experts say the move will particularly benefit mid-level professionals and employees in sectors where perquisites form a key part of the compensation structure, making the overall tax regime more equitable for salaried classes.
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What Are Perquisites?
Tax-free perquisites, such as employer-provided medical treatment, rent-free housing or other specified benefits, are a key component of compensation packages. Until now, the lower thresholds meant that even modestly earning employees often fell outside the benefit bracket. By aligning the limits with current salary structures, the government has provided substantial relief to the salaried class, especially mid-level professionals and employees posted abroad.
Source: News18
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