16 January 2010
Sir, the notification no. 94/2009 dated 18.12.2009, 2(ii), motor car owned by the employee used partly for official purposes and partly for personal uses. The wording given in the clause says " the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer ". My query is :- If the employer pays a certain percentage of basic pay every month" is the employee eligible to claim deduction of Rs 1800/= + Rs 900 for chauffeur . Can the employer interpret this is an allowance and not reimbursement and running & maintenance expenses charges met by him?. please comment. Thanks
18 January 2010
You cannot enjoy exemption of any allowance untill not given with the name of "Allowance".
Here, you are getting fix % of salary for your car. I think owned by you, therefore according to rule if Car used partly for Personal & partly for Official purpose then exemption is available Rs. 1800pm + Rs. 900 pm(if chauffer available).
However, if you want take exemption for whole amount then you have to produce LOG BOOK & CERTIFICATE by employer, which will mention that whole amount used for official purpose.
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