Perquisite of Car

This query is : Resolved

Meenakshi Sundaram (Querist)
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27 October 2009 After abolition of FBT, car reimbursement is taxable in hands of employee ccording to Rule 3 .

If the car was taken on Lease by employee and expenses are met by employee claimed as perquisite. Will it be taxable under Rule 3? (Assume the car is used for personal purposes)

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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27 October 2009 Yes

Yes assuming expenses are met by employee and reimbursed by the company ( lease rent+expenses)

If expenses met by employee and not reimbursed by employer then only lease rent will be perquite.