As per sec. 17(2) of the Income tax Act, Perquisite includes-

i. Value of rent-free accommodation provided by the employer. 

ii. Value of concession in rent in respect of accommodation provided to the assessee by his employer.

iii. The value of any benefit or amenity granted or provided free of cost or at concessional rate to specified employees .

iv. Amount paid by an employer in respect of any obligation which otherwise would have been payable by the employee. 

v. Sum payable by an employer,whether directly or through a fund other than recognised provident fund or approved superannuation fund or deposit-linked insurance fund, to effect an assurance on the life of the assessee or to effect a contract for an annuity.

vi. The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.

vii. Any contribution in excess of Rs.1 lakh to an approved superannuation fund by the employer in respect of the assessee.

viii. the value of any other fringe benefit or amenity as may be prescribed.

Notes

a) Perquisites are taxable under the head Salaries only if, they are:

• Allowed by an employer to his employee or any member of his household.

• Resulting in the nature of personal advantage to the employee.

• Derived by virtue of employee s authority.

b) Member of household includes:

• Spouse (whether dependent or not);

• Children and their spouse (whether dependent or not);

• Parents (whether dependent or not); 

• Servants; and

• Dependents.

Substantial interest means the employee who beneficially holds 20% or more voting power in the employer company.

3. An employee whose aggregate salary from all employers together exceeds Rs.50000 p.a. For computing the sum of Rs.50000, following are to be excluded/deducted:

 a) All non-monetary benefits;

 b) Non-taxable monetary benefits;

 c) Deduction u/s 16(ii) and 16(iii); and

 d) Employer's contribution to Provident Fund.

Exempted Perquisites

Following perquisites are exempted in hands of employee:

1. Tea, similar non-alcoholic beverages and snacks provided during working hours.

2. Food provided by employer in working place.

3. Recreational facilities extended to a group of employees.

4. Goods manufactured by employer and sold by him to his employees at concessional (not free) rates.

5. Conveyance facility provided to employees for journey between office and residence and vice versa. Conveyance facility provided to the judges of High Court and Supreme Court.

6. Amount spent on training of employees including boarding and lodging expenses of the employees on such training.

7. Any perquisite allowed outside India by the Government to a citizen of India for rendering services outside India.

8. Contribution in some specified schemes 

• Employer's contribution to a pension or deferred annuity scheme.

• Employer's contribution to staff group insurance scheme.

• Payment of annual premium by employer on personal accident policy affected by him in respect of his employee. 

9. Loan given at nil or at concessional rate of interest by the employer provided the aggregate amount of loan does not exceed Rs.20000. However, interest free loan for medical treatment of the diseases specified in Rule 3A is exempt without limit.

10. A provision of medical facility at office is exempt. In any other case, medical facility up to Rs.15000 is exempt.

11. Periodicals and journals required for discharge of work.

12. Telephone, mobile phones facility is exempt

13. Free education facility to the children (any number) of employee in an institution owned or maintained by the employer provided cost of such facility does not exceed Rs.1000 per month per child.

14. Computer or Laptop provided whether touse at office or at home (provided ownership is not transferred to the employee) is exempt.

15. Sale or gift of any movable asset (other than car and electronic items) to the employee after being used by the employer for 10 or more years.

16. Leave Travel Concession (LTC) subject to few conditions is exempt.

17. Rent-free official residence provided to a Judge of a High Court or the Supreme Court is exempt.  Rent-free furnished residence (including maintenance thereof) to Official of Parliament, a Union Minister or a Leader of opposition  in Parliament is exempt. 

18. Accommodation provided on transfer of an employee in a hotel for a period not exceeding 15 days in aggregate is exempt. Accommodation provided in a remote area to an employee working at a mining site or an onshore exploration site or a project execution site or a dam site or a power generation site or an off shore site.

19. Tax on non-monetary perquisite paid by employer on behalf of employee is exempt.

20. Health club, Sports club facility is exempt