Reimbursement of driver wages & vehicle maintenance

Hi Manoj,

You will get exemption of Rs.1800 (car running expenses if car engine capacity less than 1600 CC otherwise Rs 2400) + Rs 900 (Drivers salary), Total Rs2700 or Rs3300 (for big cars) would be exempted per month irrespective of actuals. Please note you have to provide valid bills for same to employer to get tax exemption.

Example Actual exepnse & reimbursed by company Rs 5000

Actual driver salary & reimbursed Rs 10000

Total received & expensed 15000

Exempted Rs 2700 (small cars) subject to submission of fuel bills & drivers voicher

Taxable Rs12300

I hope this is clear.

Thanks

Harpreet Singh