21 July 2011
Can any one help me on the following???
The co. provides Car to the employee, employee hire drive whose salary is reimbured by the Co. later on. And the employees doesnt maintain any log books.
Whether the same reimbursment will be added to the salary of Employee????
21 July 2011
If the car provided by company to you is wholly and exclusively used for official purposes, then the perquisite value of reimbursement amount of salary paid to driver will be nil .So no Tax and will not be included in the salary income . Reference : http://www.incometaxindia.gov.in/Archive/IncomeTax_Valuation_Perquisites.pdf
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