Perquisite and Tax on Car
This query is : Resolved
05 February 2010
Pls let me know whether the car provided by the company and the fuel expenses given by company is chargeable to tax in the hands of the employee?The car is primarily used for commuting from residence to office and back and from office to meet customers in and out of mumbai.
pls reply on mchhaya@gmail.com
pls reply on mchhaya@gmail.com
M Prabhakar Menon
(Expert)
05 February 2010
If you can satisfy that the usage is as stated above it will not be treated as a perk and included in salary income.
M Prabhakar Menon
(Expert)
05 February 2010
.
05 February 2010
Thanks Mr Menon,but how can i prove that it is purely for official purpose,what needs to be maintained from IT angle?
If the car is used for reaching office from residence and back and then for the official work from office,how are the details to be maintained to help me prove it is not a perquisite,and not be chargeable to tax in my salary.
Pls explain in detail how can it not be considered as a perquisite and not be chargeable to tax in salary
If the car is used for reaching office from residence and back and then for the official work from office,how are the details to be maintained to help me prove it is not a perquisite,and not be chargeable to tax in my salary.
Pls explain in detail how can it not be considered as a perquisite and not be chargeable to tax in salary
05 February 2010
Another clarification,if it is treated as salary income,then my salary slab will increase.I am getting the fuel cost against the actual bills of petrol,then how can it be a part of my salary income,pls clarify
M Prabhakar Menon
(Expert)
05 February 2010
In your case the car belongs to the company all expenses incurred theron is the company's expense anybody the company permits can travel by it.An expense becomes a perk when the employer bears any expense on your behalf and doesn't recover it from you. Got my point?
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