Vehicle · perquisite
Driver provided by employer
A driver engaged for you is a perquisite, valued alongside any car benefit.
How the taxable value is determined
Where a car perquisite applies, the driver is valued at the prescribed ₹900 per month; where no car perquisite arises, the employer's actual cost applies.
Regime availability
- Old regime
- Prescribed value applies
- New regime
- Prescribed value applies
Documentation to keep
Employer payroll record for the driver.
Legal basis: Rule 3(2) and Rule 3(3), Income-tax Rules
Frequently asked questions
Is driver provided by employer taxable in India?
A driver engaged for you is a perquisite, valued alongside any car benefit. Where a car perquisite applies, the driver is valued at the prescribed ₹900 per month; where no car perquisite arises, the employer's actual cost applies.
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(2) and Rule 3(3), Income-tax Rules.
What records should I keep for driver provided by employer?
Employer payroll record for the driver.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.