Dear Friends
Recently my company comes up with a proposal that I ( an employee) will buy a car on EMI ( Rs. 9000/- PM) and the company will reimburse it. ( it will last for three years)
My querry is regarding its taxability. whether it will be taken as prequisite till all the EMI's are paid ? Please guide me, and if there is some other possible way out ot save the tax.
regards
narendra kr.
Gurgaon
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 | ||
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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 |
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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?
CAclubindia
