This means that assets are owned by company but are being used by employee free of cost.


If a company provides moveable assets for free use to employee,then

Rent paid by company on it


10% Dep on asset

is taxable perquisite

 However if Laptops or Computers provided, then it is exempt



Only moveable assets are covered in this provision

In case ,immoveable property (house) used by employee,it is covered in Rent free Accomodation

  Use of movable assets by Employee   - Taxability of Perquisites



Q1    The company provide the following assets for free use at

         Employee's home for personal use

a.Laptop – Rs.40000 (purchased by the company)



 b.Computer taken on rent by the company = Rs.2,000 rent paid



c.Furniture – Rs.100,000 owned by the company



d.AC (air conditioner) taken on rent Rs.3,000 per month



Taxable Perquisite= Rent on AC = 3000*12 = 36000



Q2 Suppose in Q1 The company charges rent from Employees as follows

Laptop – 500 P.M

Computer – 600 p.m.

Furniture – 400 p.m.

AC  1000 p.m.




  1. Income Tax
  2. Income from Salaries
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.