Difference in taxation of company leased car
This query is : Resolved
09 April 2025
Between old and new tax regime, are there any differences in tax benefits for employee incase he uses company lease car. Car belongs to company and is leased to employee for 3 years. Car lease is less than 50k per month.
11 April 2025
The monthly lease rental paid by the company is not considered a taxable perquisite in your hands.
Secondly, the perquisite value for personal use of the car is also the same under both regimes.
So, in general, there doesn't seem any difference in both the tax regime.
Secondly, the perquisite value for personal use of the car is also the same under both regimes.
So, in general, there doesn't seem any difference in both the tax regime.
12 April 2025
Thank you Shri. Dhirajlal Ji. Appreciate.
If i understand you correctly, you think that tax benefit on car lease won't reduce if I shift to new tax regime.
However, I heard from multiple sources that in new tax regime, car lease amount paid by company after deduction from my salary, maintenance, fuel, chauffer salary reimbursement to me is fully considered as taxable prerequisite.
While in old tax regime, tax prerequisite is only Rs.1600 per month for fuel plus maintenance and 900 pm for driver salary and lease amount is fully non taxable.
Which document should I read to understand this myself pls ?
If i understand you correctly, you think that tax benefit on car lease won't reduce if I shift to new tax regime.
However, I heard from multiple sources that in new tax regime, car lease amount paid by company after deduction from my salary, maintenance, fuel, chauffer salary reimbursement to me is fully considered as taxable prerequisite.
While in old tax regime, tax prerequisite is only Rs.1600 per month for fuel plus maintenance and 900 pm for driver salary and lease amount is fully non taxable.
Which document should I read to understand this myself pls ?
12 April 2025
If the car is only used for company's work, it will not be taxable to you, as it is not considered as perquisites. But if it is used for personal purpose, it will be added to your salary income, which will be taxable in both the regime equivalently. Considering slab rate, new regime would be more beneficial.
12 April 2025
Is there any document I can refer for details pls
Where are these tax rules written ?
Where are these tax rules written ?
12 April 2025
1. https://cleartax.in/s/tax-benefit-salaried-employee-car-provided-employer
2. https://incometaxmanagement.in/perquisites-valuation-of-motor-car-other-vehicles-rule-32/
3. https://incometaxindia.gov.in/Pages/tools/motor-car-facility.aspx
2. https://incometaxmanagement.in/perquisites-valuation-of-motor-car-other-vehicles-rule-32/
3. https://incometaxindia.gov.in/Pages/tools/motor-car-facility.aspx
12 April 2025
Thanks a lot. Thing is nowwhere it is mentioned how NTR treats car lease. So I think treatment must be same then.
12 April 2025
Good Luck...
12 April 2025
Thanks Sri Dhirajlal Ji
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