Tax Query

Dear Pramod,

case 1 CAR IS USED FOR OFFICIAL PURPOSES ONLY

                      - Nothing will be taxable

case 2 CAR IS USED FOR PERSONAL PURPOSES ONLY

            A) CAR IS OWNED/HIRED BY EMPLOYER

                       - Actual Exp. i:e 8,000 + 12,000 will be taxable +

                      - 10% of cost of car (if owned) or Actual hire charges paid be employer will be tabxable

             B) CAR IS OWNED BY EMPLOYEE

                              - Actual Exp i"e 8,000 +12,000 will be taxable

3) CAR IS USED FOR PARTLY OFFICIAL & PARTLY PERSONAL PURPOSES

             A) CAR IS OWNED/HIRED BY EMPLOYER

                     - BIg Car(exceeding 1600 CC) then 2,400/month will be taxable

                       - Small Car (less than 1600 CC) then 1800/month will be taxabl

                       - Driver;s Salary  - Rs. 900/month will be taxable

           B) CAR IS OWNED BY EMPLOYEE

                     ACTUAL EXPENDITURE (I:E Rs. 8,000+ 12,000) LESS LIMITS  SPECIFIED IN 3(A) ABOVE WILL BE TAXABLE