Avail 50% discount on all subjects for Nov batch(access till Nov 20th). Use coupon code Nov14.

×

Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Discussion > Income Tax > Tax queries >

Car maintenance and Fuel reimbursement

    Post New Topic
Pages : 1





Manager


[ Scorecard : 35]
Posted On 31 January 2010 at 18:24 Report Abuse

What are the new rules? I have personal car with driver but its in my home town with my Father. Car is in my name and I bear all the expenses. Its engine capacity 1600 cc. Can I claim it? Also can I claim for money for say Jan if there are no bills for Dec?


Online classes for CA CS CMA



Amir
Learner


[ Scorecard : 3956]
Posted On 31 January 2010 at 18:31

Dear Diva,

Since Car is at different place from where u r working..& that too with ur Father....

Therefore it cannot be said to be used for official purposes..

I:e In the eyes of Income Tax, it will be treated as used exclusively for "PERSONAL PURPOSES"..

If u claim any expenses on account of this car from ur employer then the entire amount will be taxable in ur hands as perquisites..





Rahul Bansal
Finalist


[ Scorecard : 35070]
Posted On 31 January 2010 at 18:36

THANKS AMIR




Diva
Manager


[ Scorecard : 35]
Posted On 31 January 2010 at 18:42

Thanks Amir. I agree its for personal use and it will be part of perquisite. But is there any exemption allowed? I read somewhere Car maintenance and Fuel reimbursement. This element is taxable now. The exemption is limited to Rs 1,800 per month (engine capacity <= 1600cc) and Rs 2,400 per month (engine capacity > 1600cc). Any amount over and above the exemptions is fully taxable. Driver’s salary reimbursement. This element is taxable now. The exemption is limited to Rs 900 per month. Rest of the reimbursement amount will not be treated as a perquisite and hence will not attract additional tax.



Amir
Learner


[ Scorecard : 3956]
Posted On 31 January 2010 at 18:47

Dear Diva, What u r saying about the limit of Rs.900 or Rs. 1,800 is applicable where Car is used for Partly offical & partly personal purposes... As i mentioned in the present case it cannot be said that u r using the car partly for official & partly for personal purposes.



Diva
Manager


[ Scorecard : 35]
Posted On 31 January 2010 at 18:51

Thx. So to conclude no exemption when car is wholly used for personal purposes.



Amir
Learner


[ Scorecard : 3956]
Posted On 31 January 2010 at 18:55

Dear Diva, Yes u r absolutely rite now...


There are 6 Replies to this message






Related Files








Related Threads


Post your reply for Car maintenance and Fuel reimbursement



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.



Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top