Perquisites on motor car

This query is : Open

Sunil Kr. Sanganeria (Querist)
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02 February 2012 Company reimburse the petrol expneses(Rs.9000/- P.M.) and Driver allowances(Rs.8000/-P.M.) incurred by the employee for commuting from residence to office and from office to reidence. The Car is owned by the employee and the capacity of the car exceeds 1.6 ltr.

Can I allow full amount of Driver allowances to employee as non Taxable

Please advice

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 February 2012 My view,. this will be treated as person usage of car only. no element of official usage of car involved. so cannot give deduction for this portions

let see for more experts view.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Querist)
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03 February 2012 Please give the Opinion on Driver allowances:-

Should I allow full amount of 9000 per month or 900/- P.M.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 February 2012 Driver salary can be allowed maximum Rs.900 per month (car used for official and personal purpose).

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