Car Sold to Employee

This query is : Resolved

CPA Parveen Sharma (Querist)
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17 November 2009 Hi Expert, if a Brand new car is purchased by the company of INR 250000/- in 2008, and was sold to an employees in november'2009 of INR 120000/- what would be the taxable value in the hand of an employees as perquisites or how to ascertain the value of perquisites ??

2. what is the exemption limit for Tribal area and Hill compensatory allowance paid to an Govt employees or non govt employees ?

Thanks,
Parveen Sharma

Ankit Garg

Ankit Garg (Expert)
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18 November 2009 For computing the perquisite value of asset, the normal wear & tear for each completed year (e.g. 15th May 2008 to 14th May 2009) is deducted from the original value of the asset [Rule 3(7)(viii)], further consideration received by the employer is also to be deducted from the actual cost of the asset.

Rule 3(7)(viii)
The normal wear & tear for the assets:
Electronic items/computers 50% (by reducing value method)
Motor Car 20% (by reducing value method)
Any other items 10% (by reducing value method)

The value of the car in your car is vary according to the purchase date (i.e. date of purchase in year 2008)

CPA Parveen Sharma

CPA Parveen Sharma (Querist)
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19 November 2009 You are absolutely right...thanks Anikt

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