Entertainment · perquisite
Club and sports membership
Club facilities provided by the employer are taxable at cost, with a narrow official-use exception.
How the taxable value is determined
Taxable value is the employer's expenditure less any recovery. Health-club facilities provided uniformly to all employees at the employer's premises are excluded.
Regime availability
- Old regime
- Prescribed value applies
- New regime
- Prescribed value applies
Documentation to keep
Membership invoices and evidence of any business use claimed.
Legal basis: Rule 3(7)(vi), Income-tax Rules
Frequently asked questions
Is club and sports membership taxable in India?
Club facilities provided by the employer are taxable at cost, with a narrow official-use exception. Taxable value is the employer's expenditure less any recovery. Health-club facilities provided uniformly to all employees at the employer's premises are excluded.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is not applicable — the value is prescribed, not exempted; under the new regime it is not applicable — the value is prescribed, not exempted. Legal basis: Rule 3(7)(vi), Income-tax Rules.
What records should I keep for club and sports membership?
Membership invoices and evidence of any business use claimed.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.