Perquisites are benefits that an employee receives from their employer apart from their monthly salary. These benefits can be both taxable and non-taxable, depending on their nature. Tax-free perquisites are those that are exempt from income tax under the Income Tax Act. Here are some examples of tax-free perquisites:

• Medical facilities and reimbursements
• Recreational facilities provided uniformly to all employees
• Training expenses incurred by the employer for the employees
• Use of a laptop or computer belonging to the employer
• Scholarship provided by the company to an employees child
• Free food and non-alcoholic drinks provided to an employee while they are on the job at the workplace or via a paid voucher that is only redeemable at specific locations and cannot be transferred

It is important for both employers and employees to be aware of the list of tax-free perquisites provided by the Income Tax Act for effective tax planning and reduction of tax liability.