Car given to employee to use, is it perquisite?

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 Dear Sir/Madam,

One of my client purchase a car for his employee against its Flexi fund(as per their internal policy)

So car is booked in the books of companies account as purchased on the name of company. and employee enjoys the car for its personal use.

so in that case, expenses related to car is reimbursed by the company e.g petrol expenses and insurance is also reimbursed.

So insurance and petrol expenses are perquisites?
and is it liable to tax in hands of employee if it is perquisite.?

Ketan Shah

Ketan Shah (Expert)

23 December 2014 Yes the above amount will fall with in the ambit of perquisites.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 Please can you provide any link or supporting for your reply?

Ketan Shah

Ketan Shah (Expert)

23 December 2014 Refer section 17 of income tax act along with (INCOME-TAX (THIRTEENTH AMENDMENT) RULES, 2009 - SUBSTITUTION OF Rule 3 and insertion of rule 40F.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 Thanks for your valuable advice .

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