In case of employee if company provides lease car facilty and employee's relative is given a car on hire to the employer and gets fixed amount as Vehicle hire charges every month on regular basis. necessary TDS has been deducted.
quation here is --- How to treat the income in the hands of the said relative or spouse - what ever it may be and any deductions are available to this income
That will be treated as income from business or profession. The car running expenditure and maintenance, etc can be claimed as expenditure.
No offence to other replies
In my opinion if we will go into the substance of this transaction, it is in the nature of a gift from said employee to his relative.
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