Car lease taxability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 What will be the taxability of car lease amount, if an employee takes car on lease and the employer reimburse the same.In case it is non taxable pls let me know upto what extend it is non taxable

Rupesh Jain

Rupesh Jain (Expert)
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20 July 2013 LEASE AMOUNT WILL TAXABLE IN HAND OF EMPLOYEE AS PREQUISITIES

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 July 2013 it is a perquisite in hands of employee and needs to be included in the salary of employee.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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20 July 2013 Taxability of motor car perquisite depends of purpose of use of car. See Below

Perquisite of motor car provided by the
Employer- the value of such perquisite shall be :
a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties.
b) Actual expenditure incurred by the employer on the running and maintenance of motor car, including remuneration to chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use (in case the motor car is exclusively for private or personal purposes of the employee or any member of his household).
c) Rs. 1800- (plus Rs. 900-, if chauffeur is also provided) per month (in case the motor car is used partly in performance of duties and partly for private or personal purposes of the employee or any member of his household if the expenses on maintenance and running of motor car are met or reimbursed by the employer). However, the value of perquisite will be Rs. 2400- (plus Rs. 900-, if chauffeur is also provided) per month if the cubic capacity of engine of the motor car exceeds 1.6 litres.
d) Rs. 600- (plus Rs. 900-, if chauffeur is also provided) per month (in case the motor car is used partly in performance of duties and partly for private or personal purposes of the employee or any member of his household if the expenses on maintenance and running of motor car for such private or personal use are fully met by the employee). However, the value of perquisite will be Rs. 900- (plus Rs. 900-, if chauffeur is also provided) per month if the cubic capacity of engine of the motor car exceeds 1.6 litres.