There is two scenario again: monthly car allowance rates Also Read: Fill Income tax return ITR1 in 5 Minutes: The Complete Guide If the assessee is using the vehicle with the capacity below 1600 CC, the amount considered for the official use is ₹ 1800 PM plus ₹ 900 if chauffeur (the driver) is provided by the employer.
How is the value of a car allowance calculated?
If the car is owned by the employee but the maintenance and running expenses are met by the employer or reimbursed to the employee, the value of the allowance shall be determined as the difference between (a) actual expenditure incurred by the employer, and (b) the amount calculated at the rate given below:
What is car allowance policy for employees?
there are two possibilities: car allowance policy for employees The vehicle is used only for the official purpose. The vehicle is used for both personal as well as official. If the vehicle is used for the official purpose the amount is treated as non-taxable with the condition of maintaining proper records in Logbook of the vehicle.
What is the car tax exemption for employees in India?
If the employee owns the car, he will be entitled to an exemption of Rs 2,700 per month or Rs 3,300 per month in respect of the driver's salary, car maintenance expenses and fuel expenses borne and reimbursed by the employer. Your are not logged in . Please login to post replies