What would be the perquisite value for the employee and tax liability of the company in the following conditions:
Facts:
1. The employee own a car and given on lease to his employer company and receives monthly lease rent.
2. The same car is provided by the employer to the said employee for his offcial and personal use.
3. The running and maintenance expenses is borne by the employer.
Query:
1. Whether the lease rent received by the employee would be taxed as inocme from other sources or business income.
2. Whether depreciation and insurance expenses would be allowed to employee from lease rent income.
3. Whether TDS would be deducted by the employer from lease rent.
4. What would be the perqs. value of the employee in above situation.
CAclubindia
