## Use of Movable Assets for Personal Purpose

When an employer lets the employee use a movable asset for personal purposes (without transfer of ownership), the value of usage is a perquisite.

### Taxable Value Table

Asset	Taxable Value
Computer / Laptop	Fully Exempt
Other Assets (TV, AC, Furniture etc.) — if owned by employer	10% p.a. of actual cost
Other Assets — if hired by employer	Hire charges paid by employer

### Comparison with Transfer

Aspect	Use of Asset	Transfer of Asset
Ownership	Retained by employer	Passes to employee
Computer/Laptop	Exempt	Depreciation @ 50% WDV
Other assets	10% of cost OR hire charges	Depreciation @ 10% SLM, then WDV − Consideration

Worked example

### Example 1

Example 1: Employer provides a refrigerator (cost ₹ 40,000) to employee for personal use throughout the year.

Perquisite = 10% × ₹ 40,000 = ₹ 4,000 p.a.

### Example 2

Example 2: Employer hires an AC at ₹ 2,000 p.m. and gives it to employee for personal use.

Perquisite = ₹ 2,000 × 12 = ₹ 24,000

⚠️ Common exam mistakes

Confusing 'use' (10% of cost annually) with 'transfer' (WDV-based one-time computation).
Charging perquisite on computer/laptop usage — these are exempt.
Using cost instead of hire charges when employer has hired the asset.

Reference:

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Perquisite: Use of Movable Assets (Personal Use)

Worked example