Something unexpected happened when the government released the Income Tax Rules, 2026 on 20 March 2026. They raised the perquisite on petrol and diesel cars — sharply, in some cases tripling it. And they reduced the perquisite on electric vehicles. For anyone considering an employer car lease, this changes the calculation decisively in favour of EVs.
What Changed in IT Rules 2026
The perquisite value is the amount added to your taxable income when your employer provides a car. Under the new rules:
- ICE car ≤1.6L: ₹1,800/month → ₹5,000/month (up 178%)
- ICE car >1.6L: ₹2,400/month → ₹7,000/month (up 192%)
- Electric vehicle: ₹2,400/month → ₹2,000/month (down 17%)
The government's intent was to incentivise EV adoption. The accidental result for corporate lease users: EVs now have by far the lowest perquisite rate, making them the most tax-efficient vehicle choice.
The EV vs Petrol Comparison — Same ₹15L Budget
Comparing a Maruti Brezza petrol (₹14.5L) vs a Tata Nexon EV (₹15L) through employer lease over 4 years at ₹40L CTC:
- Monthly perquisite: Petrol ₹5,000 · EV ₹2,000
- Annual perquisite tax (@34.32%): Petrol ₹20,592 · EV ₹8,237
- Annual tax saved on lease: Petrol ₹1.51L · EV ₹1.90L
- Annual fuel saving (EV vs petrol): +₹60,000
- Total annual benefit (EV): ₹2.5L vs ₹1.5L petrol
The EV wins by ₹1 Lakh per year — before accounting for lower maintenance costs.
Which EV Models Qualify
All electric vehicles qualify for the ₹2,000/month perquisite rate. Popular models within common lease budgets:
- Tata Punch EV — ₹10–14L (entry point)
- Tata Nexon EV — ₹14–18L (most popular)
- MG ZS EV — ₹18–22L
- Mahindra BE 6 — ₹22–27L
- Hyundai Creta Electric — ₹17–20L
All are available for employer lease through LeaseBridge. The NBFC purchases the vehicle in an SPV. You use it. At lease end (typically 4 years), the SPV dissolves and the car is yours at ₹1.
How to Get an EV Through Your Employer
The structure is identical to any employer car lease:
- Select your EV model within your lease budget
- LeaseBridge's NBFC partner purchases it in an SPV
- Employer deducts lease amount from CTC (pre-tax)
- You drive the car, pay only ₹2,000/month perquisite tax
- After 4 years: SPV dissolves, car yours at ₹1
If your company doesn't currently offer car lease: forward the LeaseBridge calculator to your HR. Setup takes 2 weeks and zero HR overhead after that.