Guide me in understanding this tax

407 views 1 replies

Hi,

I recieved notice regarding this new tax perquisite for Car lease. Can you help me in understanding it better.

Car is in the name of employer and every month approx 9k amount is given as EMI plus 2600 fuel is reimbursed.

Replies (1)

Dear,

In simple terms-

1) If car is provided only for OFFICIAL purposes ONLY - nothig is taxable

2) If car is provided only for PERSONAL purposes ONLY - taxabe amount is

        ACTUAL EXPENSES + Depreciation (if car is owned by employer) or Hire charge(if employer has taken on lease)

3) if PARTLY OFFICIAL & PARTLY PERSONAL - taxable amount will be as follows-

a) If running & maintenance expenses are borne by EMPLOYER -

    For car exceeding 1600 CC -  2,400/month + 900 (for driver if provided)

     For Car upto 1600 CC - 1,800/month +900 (for driver if provided)

b) If running & maintenance expenses are borne by EMPLOYEE -

    For car exceeding 1600 CC -  900/month + 900 (for driver if provided)

     For Car upto 1600 CC - 600/month +900 (for driver if provided)

If u still have any doubts then plz share it

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