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Mar 12, 2026
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Personal use of company credit cards may attract tax under proposed I-T rules 2026
As per the proposed Income Tax Draft Rules, 2026, credit card usage may come under stricter income tax scrutiny from April 1, 2026. Expenses made on employer-provided credit cards might be considered taxable perquisites unless the cardholder shows that the expenses are made for official purposes along with the required documentation.
These changes are expected to bring greater transparency to credit card usage, rather than leading to any immediate change in how credit cards function or benefit consumers.
The proposed treatment of employer-paid credit card expenses as taxable perquisites is particularly relevant for mid and senior-level employees. If a company pays the annual fee of a personal card, or absorbs personal spending, the value could be added to taxable salary unless structured properly. Many employees overlook this because the benefit is indirect.
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