05 June 2012
Yes Raghav..you may use CAR allowances but remember in case of personal usage you will enjoy a least exemption, so you may lease your car with company for both use personal and official use...petrol reimbursement and chauffeur's salary reimb and other reimbursement which will lead you maximum saving in income tax liability...Perquisite value is equal to Rs 1,800 per month if the cubic capacity of car is up to 1,600. For cars with higher cubit capacity, the perquisite value is Rs 2,400 per month. Further, Rs 900 per month is added if a chauffeur facility is also provided
05 June 2012
Sorry Sareen Sir, Mr. Raghav is asking about something else,if he will avail car lease facility then he will not enjoy deduction of conveyance allowance of Rs. 800/-. Kindly reply in context of matter sir, which will enrich our knowledge and correct me if i am wrong anywhere
Yes as we all know about the exemption limit of Rs 800 p.m.which is the fixed benefit but I want to know here how we can have the maximum benefit in case of Car and which being used by me for office and personal purposes.
If we get the benefit of 1800/2400 p.m depending on the cubic capacity in this case do we need to have the record of the uses of the car for which we are getting the benefit.
Kindly request you to suggest me because this will help all the salaried employees to get this kind of benefit under income tax provisions.
05 June 2012
there is nothing like documentation , company will hire you car and mention the cubic capacity as well as there..some of company use to have a proper lease document for one year and mentioning all the details of vehicle hired..it depends upon your company's HR rules
CAclubindia
