Rules 3C and 3D has been inserted, which prescribe new income thresholds for claiming exemptions on perquisites. Rule 3C sets the salary income threshold at Rs. 4,00,000 for section 17(2)(iii)(c). Thus, employees with salary income exceeding Rs. 4 lakh in a financial year will not be able to claim exemption on specified perquisites such as meal coupons, rent-free accommodation, or medical reimbursements, which will become fully taxable. Rule 3D sets the gross total income threshold at Rs. 8,00,000 for section 17(2)(vi). Thus, if an employee gross total income exceeds Rs 8 lakh, the tax benefit of concessional loan facilities will not be available, and the perquisite value will be taxed. These amendments are intended to target exemptions at middle-income salaried employees while limiting tax-free perquisite benefits for higher-income groups.