Driver's salary reimbursed by employer

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 March 2013 Hi, Friends,

Can any one assist me in knowing the taxability of Driver's salary in hands of employee.Car is wholly used for the official purpose and the company reimbursed the driver salary to emplyee.

Thanks in Advance.
BJM

05 March 2013 Please confirm, does driver is also utilized wholly for official purpose?

If Yes, then why company is not paying directly to driver.

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 March 2013 Yes, driver is utilized wholly for official purpose. Since the driver is appointed by the Employee for travelling to and fro for official duty, company insisting that employee has to pay and company will reimburse the salary.


08 March 2013 Then it should not be taxed in the hands of employee.

It seems strange that driver is hired only for official purpose and salary is paid thru employee. This way employer may be avoiding his obligations under various acts PF, ESI etc.



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