Tax benefits of buying a vehicle in company/employee's name.
This query is : Resolved
17 July 2013
Hi ppl,
I have recently been told to make a comparison of tax benefits arising out of 3 options:
1. Vehicle bought by employee.
2. Vehicle bought by company.
3. Company leasing the Vehicle.
Acc to me, last option is the best, but wud really appreciate any guidance on the tax benefits in each case (especially first 2, as our company is keen to go for either of them)
I have recently been told to make a comparison of tax benefits arising out of 3 options:
1. Vehicle bought by employee.
2. Vehicle bought by company.
3. Company leasing the Vehicle.
Acc to me, last option is the best, but wud really appreciate any guidance on the tax benefits in each case (especially first 2, as our company is keen to go for either of them)
CMA Ramesh Krishnan
(Expert)
17 July 2013
Lease option is best in the car perks under salary income.it will give more tax benefit but.
How the company is leasing, whether it is taking from outside person or from employee only?
if the company takes lease from employee only the employee has to add that income again as business income
How the company is leasing, whether it is taking from outside person or from employee only?
if the company takes lease from employee only the employee has to add that income again as business income
18 July 2013
No, the company is not leasing from employee.
It will be probably leasing from an outsider.
It will be probably leasing from an outsider.
CMA Ramesh Krishnan
(Expert)
18 July 2013
Then option 3 is good option and give more tax benefit also
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