Driver allowance

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Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 Dear Experts,
our company is providing Rs. 10K PM driver allowance however the car is owned by employee which is partially being used for official and partial for his personal purpose.

plz enlighten me can we provide the deduction of 1800 PM for car and Rs. 900 PM for driver allowance?

Thanks
KANCHAN

Amol S Joglekar

Amol S Joglekar (Expert)

16 June 2017 Car is owned by the Employee. So, no question of any perquisites to be added.

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 sir.
it mean full driver allowance i.e. 10K will be taxable

Amol S Joglekar

Amol S Joglekar (Expert)

16 June 2017 Please try to understand, the car is NOT owned by the company. So the driver's salary is taxable in the hands of that Driver.

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 sir... the driver is not paid by company. driver is hired by employee to whom the company is giving 10K pm driver allownce. hence in my opinion 10K will be taxable in the Hand of employee

Amol S Joglekar

Amol S Joglekar (Expert)

16 June 2017 If that be the case, then 10,000 is taxable in the hands of employee.

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