Tax on transfer of ctc car
This query is : Resolved
Mandeep sehrawat
(Querist)
08 January 2025
I got a ctc car worth 20 lakh from my company. The amount was actualky given on loan to me @8%. The cost towards the same was deducted from my CTC every month fir last three years. Now the residual value of car is 4 Lakh. (And I am told by my company that fair market value is 6 lakh). They say that of I buy the car now, I have to pay the residual value (4 lakh) and 30% of balance 2 lakh as tax. However, if the car is directly sold to a third person, this 30% will not need to be paid. I am confused. Request advice
CA R SEETHARAMAN
(Expert)
09 January 2025
Balance 2 lacs is treated as gift to employees.
Employees can receive tax-free gifts up to ₹5,000 from their employer. Anything above this limit is added to the employee's income and taxed according to their slab rate.
Employees can receive tax-free gifts up to ₹5,000 from their employer. Anything above this limit is added to the employee's income and taxed according to their slab rate.
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