new delhi salaried taxpayers enjoying perks such as chauffeurdriven cars will see their tax outgo jumping in the next three months as the government changed the way these perks are valued and lumps their whole year collection to three months watchthe central board of direct taxes on friday notified new rules for valuation of perquisites provided by employers to employees it comes with retrospective effect from april 1 2009 after the fringe benefit tax was abolished and perks became taxable in the hands of the employee in the new regime the value assigned to the perk enjoyed by the taxpayer will now be added to his total income and be taxed accordingly depending the tax bracket he is in in fact some employees could even go up to a higher tax bracket because of this addition of perks to the income this entire tax liability is to be recovered in the remaining three months of the year if employers have not deducted any tax so far tax liability for the full year needs to be recovered by march 31 2010 from the taxpayer which could result economic hardship of employee in case no tax has been withheld in absence of the perquisite valuation rules said vikas vasal partner kpmg perquisites provided by employees such as cars rentfree accommodation services of personal attendants confessional education confessional journeys credit card interestfree loans gift vouchers hotel stay exceeding 15 days and medical facilities employee stock option plan have become taxable in the hands of employees now the government has retained the old perquisite valuation rules that were in place prior to the fbt regime only marginally tinkering with in the case of cars and food vouchers where value of meal has been fixed at rs 50 apiece small cars below 16 litres will now have a value of rs 1800 per month while cars with engine capacity above 16 litre cubic capacity will have a value of rs 2400 per month if expenses on maintenance and running are reimbursed by the employer this essentially means that a salaried taxpayer will have to add rs 21600 to his annual income if he has a company provided small car and rs 28800 if it is a big car however if the employee bears the expenses for running or maintenance of the car then the value assigned to small car will be rs 600 per month or rs 7200 per annum or rs 900 per month or rs 10800 per annum for a big car another rs 900 per month or rs 10800 per annum will be further added if the employee has also been provided with a chauffeur the valuation has increased compared to previous perquisite taxation rules however no value will be assigned if the expenses incurred on a car is used wholly and exclusively for official purposes coming so late in the year it is a relief that there are no major surprises said amitabh singh partner ernst young the increase in