Please advise me on the taxability of under mentioned as Salary Income: 1. Car Allownace/Lease: I'm having anm option of taking a Car Allowance or Car lease as part of my Salary. I own the car and all the repair running, Maintenance is met by me.Also itds used for both official and personal purpose. 2. Also available components are Drivers Salary and Car Fuel. Please also advise on taxability of same. Driver will be appoionted by me only.
06 June 2011
IT IS BETER TO TAKE A CAR LEASE IN WHICH CASE THE EMPLOYER WILL TAKE THE LEASE IF THAT IS SO AND THAT EXPENSES ON PRIVATE RUNNING ARE MET BY U ONLY THEN THERE WILL BE LOWEST INCIDENCE OF PERQUISITE TAXATION AND LEAST DOCUMENTATION WILL BE REQD IF SUCH CAR IS USED FOR OFFICIAL PURPOSES ONLY THEN NO PERQUISITE BUT U WILL HAVE TO MAINTAIN CERTAIN DOCUMENTS
CAclubindia
