Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Vehicle Maintenance Allowance

Tax planning 23086 views 20 replies

Pravin Kumar Saharia

43 Points Posted on 02 February 2008

Whether Vehicle Maintenance Allowance is eligible for any deduction under income tax granted to employee by employers

Replies (20)

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Posted on 03 February 2008

Vehicle maintenance allowance is taxable

CA Anil Jain

Chartered Accountant

696 Points Posted on 03 February 2008

Vechile maintenence allowance is fully taxable as it is clerly mentioned that Any allowancw given except defined in the act is fully taxable. But if it is given as reimbursement it will attract FBT for the employer and will exempt for the employee. Regards, Anil Jain

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Posted on 03 February 2008

Even if it is given as a reimbursement and if the vehicle belongs to the employee, it is taxable. Mere payment of FBT will not qualify a payment to be non-taxable, if it is ab initio taxable.

Guest

459630 Points Posted on 03 February 2008

Obviously taxable!!!

Ashish Barthwal

Article

137 Points Posted on 03 February 2008

But the act is silent on the reimbursement of any such sum taxability. If the payment is mentioned under FBT and employer is paying tax on the amount, and the same amount is taxable in the hands of the employee, isn't it double taxation?

Amit Sharma

article

2677 Points Posted on 04 February 2008

Vichicel Maintaince charges are fully taxable in nature. No exemptions can be availed.

Sohil Ganeriwala

Practicing CA

308 Points Posted on 04 February 2008

It is fully taxable. no exemption can be claimed.

Guest

459630 Points Posted on 05 June 2008

I want to know about vehicle allowances in chemical industry

Guest

459630 Points Posted on 23 June 2008

Is vehicle maintenance allowace allowed only in case of Company vehicle?? Or it is exempt for personal vehicle maintained also??

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Posted on 25 June 2008

Vehicle maintenance allowance given to the employee is taxable irrespective of whether the vehicle is owned by the employer or employee

CA CS CIMA Prakash Somani

Landmark Group

23517 Points Posted on 25 June 2008

In all the below cases VMA would be taxable: 1. Car allowance paid by employer and cost of personal car insurance premium, Road tax, Parking Fees and car maintanance charges reimbursed by employer. 2. Employee leases a car and employer pays for the monthly lease rental. 3. The value of perquisits to the employee is the cost incurred by the employer.

Guest

459630 Points Posted on 02 July 2008

Hi,

My company is giving me Vehicle reimbursement allowance.I purchased Electric scooter.By any chance can I use that amount for tax exemption/deduction?

Guest

459630 Points Posted on 21 July 2008

I got this from net....

Under section 10(14) exemption of notified allowances is provided. The CBDT has prescribed guidelines for the purpose of classes (i) and (ii) of Section 10(14) vide Notification No.SO617(E) dated 7th July/ 1995 (F.No.l42/9/95TPL)which has been amended vide Notification SO No.403(E) dated 24.4.2000 (F,No.l42/34/99-TPL).