whether its your first job or you are a top executive in an mnc a higher takehome pay is always welcome salary is not just the basic pay and cash allowances that prominently figure on your monthly salary slip it includes taxable perquisites benefits in kind such as car and housing provided by your employer this kitty of all allowances and benefits is referred to as cost to company ctc the cost which your employer incurs for having you on the company rolls some of these ctc components are eligible for tax breaks prior to the beginning of any financial year be sure to talk to your hr department and devise a taxefficient ctc for yourself some typical ctc components are outlined below and apply to a nongovernment employeekey taxable perquisitescar provided by employer along with your promotion your employer gave you a car while you use it for commuting to work you also drop junior to school as the car is used or could be used partly for personal use as well it is a taxable perquisite the perquisite value will depend on the cubic capacity of the car engine and whether you or the employer pays for its maintenance and running cost including fuel the maximum perquisite value that can be added to your salary income is rs 2400 per month if your employer has also provided a driver another rs 900 per month will be added in case you prefer using a personal car for office work and your employer reimburses the maintenance and running cost you can enjoy a maximum concession of rs 2400 per month against reimbursement made by the employer for example if the employer reimburses you rs 10000 in a month the taxable perquisite value will be rs 7600 rs10000 less rs 2400hot tip if you think that you would rather use your own car think again with just an increase of rs 2400 per month in your taxable income you not only enjoy a company provided car but also get fully reimbursed for its maintenance and running costflat provided by employer an employerprovided accommodation takes away the hassle of finding a place especially in a new town but it does add up to your taxable perks its perquisite value varies depending on whether the flat is owned by the employer has been taken on rent for you or hotel accommodation has been made available it will not exceed 24 of your salary when accommodation is provided in a hotel and 15 of salary in other cases this will be reduced by the amount recovered from you if any where the employer provides furnished accommodation another 10 of the cost of furnishing if owned by employer or actual hire charges payable if leased by employer is added to the perk value each year hot tip hotel accommodation provided by the employer for the first 15 days when you move to a new town is not a taxable perquisiteyour ctc