Perks and allowance

This query is : Resolved

Ritu (Querist)
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08 April 2011 where motor car is owned by employer and is used by employee only for official purpose, in that case can employee also get exemption for transport allownance @ 800 pm.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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08 April 2011 Hi,

Transport Allowance is different from the Perq given as Motor Car,

When both benefits are given clearly only then Rs. 800/- p.m can be claimed as exemption from Transport Allowance.

As far as the Motor car Benefit is concerned, there will be nothing Chargible to Tax as it is used for Official Purpose.

Note.

Very Seldom does both the benefits are given to the employee.

Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons, ITF Hons