VALUATION OF PERKS

Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in Sl. No. 2(ii) or 3(ii) of Table II, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount attributable to official use of the vehicle provided that the following conditions are fulfilled:- 

(a)the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon; 

(b)the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties. 

Where the car is used for  wholly and exclusively in the performance of his official duties;

Nil value shall be taxable Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.

Where the car is used for wholly private use then the whole 10,000 would be taxable in the hands of employee.

Where the car is is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and-

(i) the expenses on maintenance and running are met or reimbursed by the employer;

as in your case then-

Car capacity less than 1600cc

Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car)

Car capacity more than 1600cc

Rs. 2.400 (plus Rs. 900, if chauffeur is also provided to run the motor car)

in the first case the employee has to maintain complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon;