Salary
This query is : Resolved
01 September 2012
If employee has been given a car for conveyance by employer and the EMI of the car is being deducted from the monthly salary, then how should it be treated while calculating taxable salary?
01 September 2012
Who is the owner of the VEHICLE? If the employee is the owner, then ...NOT taxble.
Message likes :
1 times
02 September 2012
No, the car ownership is with the employer only
02 September 2012
This (EMI) will make no impact while calculating taxable salary. Simply owner is recovering cost every month from your salaries.
Message likes :
1 times
02 September 2012
Then can we take exemption of the EMI deducted from the salary under any section?
02 September 2012
NO.
As the OWNER of car is your employer so your employer must be getting benefit of Interest amount on loan (if any) taken by your employer.
contact@vkbajaj.co.in
As the OWNER of car is your employer so your employer must be getting benefit of Interest amount on loan (if any) taken by your employer.
contact@vkbajaj.co.in
Message likes :
1 times
03 September 2012
Then should the salary without deducting the EMI, be taken as the taxable salary?
04 September 2012
Sushant, the car is owned by EMPLOYER. EMI is paid by the employee. This should be viewed as LOAN from employee to employer. (Mostly you are HIDING some arrangement between the employer and employee) I know few employers that such arrangements are done and the CAR is transferred to employee at some nominal value say INR1 or INR50 etc. Check the financial lease option.
06 September 2012
Give Clear details as some facts are missing....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- Form 121-contradictory opinions
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
