Driver's salary reimbursement

This query is : Resolved

biswajit (Querist)
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17 August 2013 Dear All,

I am using my own vehicle (1100cc) for official and personal purpose. My company is giving me 8000 per month in lieu of company's car. This amount is shown in my salary slip as Special Allowance. Apart from this, I am getting 5000 per month for driver salary reimbursement. I use to claim this amount from the company by showing driver salary receipt.

My query is that whether the driver salary reimbursement is taxable or not.

Thanks

Biswajit

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 August 2013 This is to be treated as perquisite and accordingly as per Act only the limited amount based on the cc of your car shall be allowed to you as expenditure and the balance is to be added to your salary and accordingly the TDS shall be deducted.