30 December 2010
we are paying employee car(Honda City) driver salary reimbursement to the employee 8000/- per month and vehicle running & maintenance expenses rs. 12000/-. is it taxable for employee or employer. please give me full details.
30 December 2010
this is taxable in the hands of employee as the following
1. If car used personal - fully taxable
2. If car used Offical - fully exempted
3. If partly offical party personal -
1.calculate actual expenditure on by employer 2.less:if car hp 16 Rs. 1600 2400 p.m. with Rs. 600 900 p.m. chauffeur salary. or higher sum as recorded by logbook by employer 3.Less :amount recovered from the employee (if any)