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Driver Salary Tax Exemption

Tax queries 3326 views 3 replies

I am owing a car which is leased by my Employer to me. As part of associated benefits of this leased car, I am eligible to claim the Driver Salary every month.

I wanted to know that can I give this Driver Salary to my wife and let her pay tax on this as she is in lower Income tax Slab as compare to me. 

Please suggest. Thanks for your help.

Replies (3)
Quick Summary
Discussion on tax treatment of driver salary under leased car benefit. Reimbursement of driver salary is generally not taxable as perquisite. Query asked if salary can be paid to spouse for tax advantage; response indicated it is allowed as per discussion.

Reimbursement of expenses is not a taxable perquisites

Thanks for your reply and I understand that If I am put this drivary salary amount as reimbursement then it will help me to reduce my income tax.

My question was that...if I don't have a driver and I want to pay this driver salary to my wife and she pay tax on this. Is this something allowed as per income tax rules?

Allowed


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