Perquisite ,Salary ???/
This query is : Resolved
17 February 2010
Hi friends N Respected Seniors ,
my question is as below.
a salaried employee has been owning motor- car which is used by him partly for official n partly for private purpose n entire amt of exp is meet by employer so he would be lianle for perquisite 1800 Rs per month (2400rs in case car engine cc is >1.6 )
here from above taxability, can sai person demand deduction for normal wear tear of the car as he owns such car ?
(as I-tax says any exp incurred for earing income which is taxable is allowed as deduction)
my question is as below.
a salaried employee has been owning motor- car which is used by him partly for official n partly for private purpose n entire amt of exp is meet by employer so he would be lianle for perquisite 1800 Rs per month (2400rs in case car engine cc is >1.6 )
here from above taxability, can sai person demand deduction for normal wear tear of the car as he owns such car ?
(as I-tax says any exp incurred for earing income which is taxable is allowed as deduction)
18 February 2010
Dear,
1) I want to clarify here that as you told car is owned by the employee/assessee & expenses met by the employer - So, according to above situation taxable amount is = AMT. PAID BY THE EMPLOYER - Rs. 1800/2400.
However, if in above situation employee maintain log book and certified by the same book by his employer with an certificate that official expenses were more then given limit Rs. 1800/2400, then deduction will be increased as provided according to log book.
2) And as you said that normal wear & tear of the car could be demand or not. Here, we should keep in mind that whatever amount employer is paying to employee that is not income of employee. Those expenses just paid to met car expenses therefore, wear & tear are not allowed as deduction purpose.
Regards!!!
1) I want to clarify here that as you told car is owned by the employee/assessee & expenses met by the employer - So, according to above situation taxable amount is = AMT. PAID BY THE EMPLOYER - Rs. 1800/2400.
However, if in above situation employee maintain log book and certified by the same book by his employer with an certificate that official expenses were more then given limit Rs. 1800/2400, then deduction will be increased as provided according to log book.
2) And as you said that normal wear & tear of the car could be demand or not. Here, we should keep in mind that whatever amount employer is paying to employee that is not income of employee. Those expenses just paid to met car expenses therefore, wear & tear are not allowed as deduction purpose.
Regards!!!
18 February 2010
Dear sir Thank you very much for your Reply
Sir If you see the Notification issued by CBDT Dated 18th DEC regarding Perquisites , it indicates something different .
what you told about log book and certificate from employer regarding official expences is applicanle only in case of "CAR IS FULLY USED FOR OFFICIAL PURPOSE" not in case of partly used for offivial and partly for private use.
So i am still confused in this issue .
And any such amount reimbursed by Employer to employee is indirectly taxable under perquisites so why only value stated 1800/2400 is charged and no deduction is given for such direct and incidental expenses pertaining to motorcar....??
Sir If you see the Notification issued by CBDT Dated 18th DEC regarding Perquisites , it indicates something different .
what you told about log book and certificate from employer regarding official expences is applicanle only in case of "CAR IS FULLY USED FOR OFFICIAL PURPOSE" not in case of partly used for offivial and partly for private use.
So i am still confused in this issue .
And any such amount reimbursed by Employer to employee is indirectly taxable under perquisites so why only value stated 1800/2400 is charged and no deduction is given for such direct and incidental expenses pertaining to motorcar....??
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