## Tax-Free Perquisites (Available to ALL Employees)
Certain perquisites are exempt regardless of whether the employee is a 'specified employee'. Memorise this list — it is frequently tested.
| # | Perquisite | Key condition / note |
|---|---|---|
| 1 | Telephone facility | Telephone/mobile at residence is tax-free. **But a telephone allowance is always taxable.** |
| 2 | Transport facility | Free/concessional transport by an employer engaged in passenger or goods transport business — exempt. |
| 3 | Privilege passes | Passes/tickets issued by Indian Railways to its employees — exempt. |
| 4 | Overseas perquisites by Government | Perquisites for services rendered abroad by Indian citizens — exempt (allowances also exempt u/s 10(7)). |
| 5 | Group insurance | Employer contribution to staff group insurance — exempt. |
| 6 | Personal accident insurance | Annual premium paid by employer on personal accident policy — exempt. |
| 7 | Office refreshments | Refreshments during working hours on office premises — exempt. |
| 8 | Subsidised meals | Up to ₹50 per meal exempt only if the employee opts OUT of the default regime. Includes paid vouchers, non-alcoholic beverages and food. |
| 9 | Recreational facilities | General club/recreation facilities — exempt, provided not restricted to a few selected employees. |
| 10 | Training expenses | Cost of training/refresher courses incl. boarding & lodging — exempt. |
| 11 | Welfare fund contributions | Contributions to RPF, ASF, or deposit-linked insurance funds — exempt up to specified limits. |
| 12 | Leave Travel Concession (LTC) | Exempt subject to conditions, only if employee opts out of default regime. HC/SC judges & family: fully exempt without conditions if they opt out under 115BAC(1A). |
| 13 | Medical facilities | Exempt within specified limits (see medical facility lesson). |
| 14 | Rent-free official residence | HC and SC judges — exempt under certain conditions. |
| 15 | Conveyance for judges | HC/SC judges — exempt if they choose the optional regime. |
### The recurring trap: facility vs. allowance
A facility (the thing itself provided by the employer) is often tax-free, whereas the corresponding allowance (cash given to obtain it) is taxable. The clearest example is the telephone facility (exempt) vs. telephone allowance (taxable).