INCOME TAX IMPACT ON CAR ALLOWANCE

This query is : Resolved

CMA Swarup K Chakraborty (Querist)
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15 February 2011 Dear Sir,

Please provide us the treatment of car allowance received from employer under cafetaria approach without giving any reimbursement claim form.

This may please be discussed keeping in view about the provision of rebate officers used to enjoy when the car is in the name of officer and running & maintenance expenditure are being reimbursed by the company against reimbursement claim form.

With regards

CMA Swarup K Chakraborty

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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16 February 2011 Dear Sir,

If car in the name of the officer and company paid all expenses then amount will be taxable as follow:

Total amount paid by the company Less (Rs. 1800pm + Rs. 900pm)

Please note if car having capacity less then 1800 cc then Rs. 1800 otherwise this will be Rs. 2400 and if chauffeur(driver) also provided then only you will have to take Rs. 900.

Regards!!!
Dinesh S. Adhikari