Car, driver and car maintenance allowances in salary

If an incident was your lack and the damage looks minor, it's luring to offer to pay cash for the other driver's fixes. In any case, it might be costlier than visit car websites you may speculate. As demonstrated by Consumer Reports, different test crashes at just 10 mph made mischief that watched minor yet assessed out at $3,000 to $6,000.

Deloitte India said that reimbursement of car expenses (used partly for official and partly for personal purposes) to an employee could be exempt up to specified limits depending on whether the car is owned by the employer or by the employee.

"If the car is owned/leased by the employer, the employee using that car will pay tax on a perquisite of Rs 2,700 per month (car with engine capacity up to 1,600 cc) or Rs 3,300 per month (car with engine capacity more than 1,600cc) in respect of the aggregate of the actual lease rent, driver's salary, maintenance expenses and fuel expenses borne by the employer. If the employee owns the car, he will be entitled to an exemption of Rs 2,700 per month or Rs 3,300 per month in respect of the driver's salary, car maintenance expenses and fuel expenses borne and reimbursed by the employer.