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

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.