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Tds on salaries

TDS / TCS 872 views 6 replies

Dear All!

Please tell me whether in the instant case the value will be called as a perqusite.

The company has taken a car on hire and provided the same to the employee. The company monthly pays car hiring charges amounting to RS.12,500/-. Also, the company reimburses the employee for the drivers salary paid. (say Rs.5,000/- every month)

Will this transaction be called as perquisite? If yes, will the answer differ if the car is used for both official and personal purpose. 

If it is a perquisite, what will be the value of the perquisite.

Replies (6)
perquisite value will be nil if car wholly and exclusively used for official purpose.
in second case value of perquisite will be 1200p.m. for running exp. and 600p.m. for driver salary, if such exp. has been reimbursed by employer.

In the first case, perquisite value will be NIL.

In the secound case, Perquisite value will be Rs. 1800 p.m. for maintenance and Rs. 900 p.m. for driver's salary for vehicle. This is for a vehicle with cubic capacity upto 1.6 litres.

For vehicle with cubic capacity in excess of 1.6 litres, perquisite value will be Rs. 2400 p.m. for maintenance and Rs. 900 p.m. for driver's salary.

i m sorry for incorrect figures. these amount have been amended and the correct amount has been given by mr. peter above.
Mr. Peter, u r such a knowledgeable person..

Dear Sir,

Please guaid me Incentive amount when showing in form 16.

Sec. 17 (1) or Sec. 17(3)

Please advice for this.


CCI Pro

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