(1) When employer provides the car
(a) Car used wholly and exclusively for official duties
Value = Nil
(b) Car used exclusively for private or personal purposes
Value = Actual expenditure incurred by the employer on the running and maintenance of motor car plus remuneration to chauffeur plus 10% of the cost of the car per annum for normal wear and tear and minus any amount paid by you for such use
(c) Car used partly for official duties and partly for private purposes; and running / maintenance expenses paid or reimbursed by the employer
Value = Rs. 1800/- (plus Rs. 900/-, if chauffeur is also provided) per month for cars with engine capacity upto 1.6 litres
Value = Rs. 2400/- (plus Rs. 900/-, if chauffeur is also provided) per month for cars with engine capacity exceeding 1.6 litres.
(d) Car used partly for official duties and partly for private purposes; and running / maintenance expenses for personal use are borne by you
Value = Rs. 600/- (plus Rs. 900/-, if chauffeur is also provided) per month for cars with engine capacity upto 1.6 litres
Value = Rs. 900/- (plus Rs. 900/-, if chauffeur is also provided) per month for cars with engine capacity exceeding 1.6 litres.
(2) When you own the car and employer pays for its actual running and maintenance
(a) Car used wholly and exclusively for official duties
Value - Nil (provided employer maintains complete details of the journey undertaken for official purposes and certifies that the expenditure was incurred wholly for official duties)
(b) Car used partly for official duties and partly for private purposes
Value = Actual expenditure incurred by the employer minus the amounts in (c) and (d) referred to in (1) above, as the case may be.
Confusing, isn't it? Well, I guess this is what the Govt wants. More complex the laws, more are the chances of they finding the loopholes for themselves; and more are the chances of we aam aadmi living at the mercy of the tax officials.
