Skip to main content
CTCPlanner

Domestic · perquisite

Domestic help, gardener, watchman

Where the employer engages domestic staff for you, their cost is your perquisite.

How the taxable value is determined

Taxable value is the employer's actual cost, reduced by any amount recovered from the employee.

Regime availability

Old regime
Prescribed value applies
New regime
Prescribed value applies

Documentation to keep

Employer's payroll records for the staff engaged.

Legal basis: Rule 3(3), Income-tax Rules

Value this benefit at my tax rate

Frequently asked questions

Is domestic help, gardener, watchman taxable in India?

Where the employer engages domestic staff for you, their cost is your perquisite. Taxable value is the employer's actual cost, reduced by any amount recovered from the employee.

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(3), Income-tax Rules.

What records should I keep for domestic help, gardener, watchman?

Employer's payroll records for the staff engaged.

Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.