Tax rebate on Vehicle maintainance

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This query is : Resolved

veenit (Querist)

14 June 2010 Hi Sir/Madam,
I have changed the job in between fy 2009-10.My previous employer provided me 2,4 wheeler reimbursments .There is no where mention of same in form16 and gross income contains all the amount which was paid as Vehicle reimbursment.
I have queries:
1. Can I claim the exemption of income tax for the Vehicle reimburement which is not in form 16 but mentioned in my salary slips.
2. are these FBT benefits available for FY 200910.
Many thanks in advance.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 June 2010 Vehicle maintenance coming under perquisites, need to be valued by employer and same need to incorporated in Form 16 and form 12 BA without employer certification you alone cannot claim exemption on vehicle reimbursement and already FBT removed

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)

15 June 2010 Veenit
Pls. note that there should be the transaction out of three situation :

1.If the company provides you a car for personal and official purposes and reimburses the fuel, insurance, maintenance and driver’s salary, the taxable value shall be: in case the cubic capacity of the car is less than or equal to 1.6 litres – Rs 1,800 per month (plus Rs 900 for the driver) and in case the cubic capacity of the car is greater than 1.6 litres – Rs 2,400 per month (plus Rs 900 for the driver).

2.In case you use your own car for official and personal purposes and the company reimburses the running and maintenance cost, the taxable value shall be: in case, the cubic capacity of the car is less than or equal to 1.6 litres – actual amount met or reimbursed by the employer less Rs 1,800 per month (plus Rs 900 for the driver) and in case the cubic capacity of the car is greater than 1.6 litres – actual amount met or reimbursed by the employer less Rs 2,400 per month (plus Rs 900 for the driver).

3.expenses incurred on conveyance in the performance of official duties are fully exempt.

in 1 , 2 situation perquisit treatment will be made
in 3 situation you must received cash from your employer that that should not form part of salary if this figure shown in form 16, but on tax comupation in form 16 this figure has been deducted by the tax computation person.
otherwise this is to be tax in your hand.

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