Vehicle allowance exemption

This query is : Resolved

VIJAYA BHASKAR.K (Querist)
Follow

28 March 2012 Hi Sir,

Please give me clarification on Vehicle allowance exemption.

my question is:

my company paying vehicle allowance as a part of salary, how can i get the exemption this allowance and under which section.

Thanks
Vijaya Bhaskar

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)
Follow

29 March 2012 Consider it as Transport Allowance and claim deduction of Rs. 800p.m. on same.

VIJAYA BHASKAR.K

VIJAYA BHASKAR.K (Querist)
Follow

30 March 2012 Hi Raghav,

All ready we are getting transport allowance rs. 9600 per annum, apart from we are receiving the vehicle allowance as part of salary, i think it is also exempted from income tax

please let me know

Thanks
Vijay

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)
Follow

30 March 2012 Hi Vijay,

Transport allowance is allowed by govt. @800p.m. irrespective of what are you spending for transportation.

Therefore no further allowance in regard to Vehicle Expenses will be allowed.

You can do Tax Planning by treating vehicle running as your business and receive Vehicle Running Rent from Co.

For more Info contact me

CA. Raghav Garg
(9812220035)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now