EMI reimbursement for Car in employee's name

Dear Narendra,

Since Car is in ur name, therefore it will be taxable as perquisite being "obligation of employee met by employer"

Tax will not be applicable if BOTH following conditions are fulfilled-

1) Employer reimburse the expenditure to u instead of making direct payment of EMI

2) CAR is used exclusively for official purposes

Originally posted by : Amir
	Dear Narendra, Since Car is in ur name, therefore it will be taxable as perquisite being "obligation of employee met by employer" Tax will not be applicable if BOTH following conditions are fulfilled- 1) Employer reimburse the expenditure to u instead of making direct payment of EMI 2) CAR is used exclusively for official purposes

AMIR SIR WOULD YOU PLS ADVICE ME IF

IT'S AN OBLIGATION WHICH IS PROVIDED BY COMPANY AND ALSO PAID BY COMPANY AND CAR COULD NOT BE USED FOR OFFICIAL PURPOSE THEN WHAT IS TREATMENT

Thanks for the clarity. Could you advise if there is a cap for the reimbursement up to which the reimbursement is non taxable?