Dear All,
I am using my own vehicle (1100cc) for official and personal purpose. My company is giving me 8000 per month in lieu of company's car. This amount is shown in my salary slip as Special Allowance. Apart from this, I am getting 5000 per month for driver salary reimbursement. I use to claim this amount from the company by showing driver salary receipt.
My query is that whether the driver salary reimbursement is taxable or not.
Thanks
Biswajit
Along with the the driver's salary of Rs 5000 pm, Rs 8000 pm the company provide you for using your car in lieu of the Company's car is also taxable as perquisites. However you shall get deduction of Rs 1800 pm for car out of Rs 5000 pm and Rs 900 for the driver salary out of Rs 5000 if the repairs and maintenance expense is incurred by you. If the car is maintained by your company then, you shall get deduction of Rs 600 pm for car out of Rs 8000 pm and Rs 900 for driver's salary out of Rs 500o pm
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Nashik
CA Inter
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