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Treatment of Car allowance

This query is : Resolved 
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(Querist)
12 April 2025 Dear experts,
I am getting rs.10000 per month as car allowance which is part of my gross salary. As I am using cab facility given by company for commuting to office and back home (official duty) I have to pay rs.5000 per month which is deducted in my salary and paid to private transport operators who are providing cabs.
Is deduction or exemption allowed in income tax, if yes how much and which regime? Please give your expert opinion.
Thanks in advance.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
13 April 2025 1. https://cleartax.in/s/tax-benefit-salaried-employee-car-provided-employer

2. https://incometaxmanagement.in/perquisites-valuation-of-motor-car-other-vehicles-rule-32/

3. https://incometaxindia.gov.in/Pages/tools/motor-car-facility.aspx
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Sreekumar K B

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Sreekumar K B (Querist)
13 April 2025 My case is different
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Manish

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Manish (Expert)
14 April 2025 10,000 p.m. is fully taxable, and no deduction is allowed for 5,000 paid for cabs.
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