The perquisite in respect of credit card is taxable as follows –

Step 1 – Calculate expenditure incurred by the employer in respect of credit card used by the employee or any member of his household

Step 2 – Reduce, Expenditure incurred on use for official purposes- Expenditure on use of credit card for official purpose is deductible. To claim deduction, the following conditions should be satisfies: (i) Complete details in respect of such expenditure is maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure, and (ii) The employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.

Further, any expenditure incurred by the employer, including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card, provided by the employer is also reduced from the above total expenditure.

Step 3- Reduce, Amount if any, recovered from the employee.

The balance above, if positive is taxable value of the perquisites.