New Delhi, April 25 -- Car lease and driver salary components may be include in an employee's compensation package as part of structured benefits offered by employers. These components fall under the category of perquisites under the Income Tax Act, 1961 and are subject to specific valuation rules for the purpose of taxation.

"Drivers and cars in a compensation package are both considered perks. With respect to taxation, they are both considered salary but are not taxed like normal salary," said Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

Taxpayers must also note that the inclusion of these components in salary packages requires appropriate reporting and compliance in line with guidelines se...