Fact-check notes
Last fact-checked: 2026-05-27
Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year language applies for income earned from 1 April 2026 onward.
This Batch 12 page avoids treating future-dated payroll/form/rule changes as final filing advice. Verify the active form, notification, payroll circular or portal utility before implementation.
What this covers
Company car perquisite values are salary-tax items that directly affect taxable salary and employer TDS. Verify the current rule table before implementing any revised values in payroll.
- Car perquisite depends on car capacity, who pays running expenses and personal/official use.
- A revised valuation table would increase taxable salary unless the employee bears costs or usage is documented as official.
- EV and fuel reimbursement treatment should be verified in payroll policy.
Who this is for
- Employee with company car.
- HR team updating perquisite payroll.
- Founder considering car lease policy.
- CA checking salary TDS.
Documents and data to verify
- Car allotment letter.
- Fuel and driver expense policy.
- Salary breakup.
- Employer perquisite computation.
Common mistakes to avoid
- Using old valuation after rule change.
- No official-use logbook.
- Ignoring driver/fuel component.
- Assuming new regime removes perquisite taxation.
How to proceed
- Confirm the applicable year, taxpayer type, form, state and portal status before acting.
- Reconcile portal data with payslips, books, invoices, Form 16/26AS/AIS, GST returns, EPFO records or contracts.
- Prepare a written computation, filing note, checklist or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.