Motor car expenses including driver salary reimbursement

Hi Soumya,

Motor car provided along with chaffuer is a perquisite u/s  17(2)(iii), and it is exempt Where maintenances and running expenses including remuneration of the chauffeur are met or reimbursed by the employer, provided if it is used wholly for offcial purpose.

Regards,

CA SAurabh SIngh,

7210864420

Further, where the car is owned by employee and expenses are met by the employer, if the car is used for private as well as official purpose, then Rs.1800 pm is exempt if car engine is of <=1600cc (or Rs.2400 pm if engine capacity is >1600cc). Also Rs.900 pm is exempt towards salary of driver if any.