Tax on Vehicle Reimbursement

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What will be the Income Tax implication on Vehicle Reimbursement as part of Salary structure

 

Thanks,

 

Hareethan

Replies (7)

dear sir

can u plz clarify the vihcle is owned by u or by ur employer.bcoz there are different tax treatment for different cases.

yes  pls clarify you query 

vehicle owned by the employee, petrol and maintenance by employee himself only, so what will be the implication

 

Thanks,

dear sir

it is not an perquisite under income tax where the employee owns vehicle and also emloyee bear cost of its running and maintenance.nothing will be taxable in ur case.

Hi,

so, total amount under vehicle reimbursement can deduct from total income, under which Section(), what will be the treatment in Form 16

 

Thanks,

Dear Sir,

You are allready say vehicle owned by employee and any exp. related to car owned by employee then reimb. by co.

this is not taxable and no effect for form16

form16 for including (Basic, HRA, Ex-gratia, Spl Allowance, ta, da, h.loan f.loan,edu.loan, project allowance, water/gas/elect, mgb, medical, lta, interest on loan, any bonus etc.

then u can find gross total income and less deduction u/s 88 = u can find taxable income

dear sir very sorry for post a wrong reply earlier,it is taxable subject to following situations.

vihcle used wholly for official purpose(here vehicle refers to any automative conveyance other than car) no value-subject to maintenance of records in respects of officila journey.
such reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee

actual reimbursement by employer

less:rs.600 per month or a higher sum for official purpose as per records

less:amount recovered from employee(if any)

balance (taxable value)

law does not specify in case of vehicle used for wholly private purpose

but i think this should be taxable as follows:

actual reimbusement by employer

less:amount recovered from employee(if any)

balance (taxable value)

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