Car FAcility and other

This query is : Resolved

Rama Mahawar (Querist)
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18 June 2010 Hi,

QA. Plesae clarify the tax benefit in case of car facility for below condition

1 car is owned by employer and used for partley office and partly personal purpose

2 car is owned by employee and used for partley office and partly personal purpose

How shall we show it in our salary structure either as a part of salary or as perquisite??

QB. a fixed amount given as perquisite to employee each month shall allow tax benefit? i have heard in order to get the benefit of perquisite it should vary each month.Please clarify.

Thanks in advnace.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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18 June 2010 Reply for Q1

Amount will be considered as perquisite u/s 17(2).

Reply for Q2

Pay the amount of perquisite by seprate cheque to the employee so that it looks like that you are actualling reimbursing the amount to the employee. The amount of reimbursment can be same for every month. But you need to mantioned records of bills for the reimbursment.