## Perquisites Taxable ONLY for Specified Employees [Section 17(2)(iii)]
Some perquisites are taxable only if the employee is a 'specified employee'. For other (non-specified) employees these are not taxed.
### Perquisites in this category
- ✓ Provision of a sweeper, gardener, watchman, or personal attendant.
- ✓ Facility of gas, electricity, or water supplied for personal use.
- ✓ Free or concessional tickets.
- ✓ Use of a motor car.
- ✓ Free or concessional education facilities.
> ⚠️ Reimbursements are taxable for ALL employees — the 'specified employee only' rule applies when the employer provides the facility in its own name, not when it merely reimburses the employee.
### Who is a 'Specified Employee'? (any one condition)
1. Director-employee — an employee who is also a director of the company.
2. Substantial interest — an employee holding at least 20% of voting rights in the company. (Only beneficial ownership is considered.)
3. High-income employee — salary exceeding the specified amount (earlier ₹50,000), where this salary is computed:
- excluding non-monetary benefits and exempt benefits, and
- after reducing deductions under section 16.
- The entire salary from all employers is aggregated for testing this limit.
### Exam strategy
First classify the perquisite (all-employee vs. specified-employee). If it's a specified-employee perquisite, then test the three conditions — satisfying any one makes the person a specified employee. Watch the reimbursement carve-out: reimbursement converts it into a perquisite taxable for everyone.