Perquisites

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2011 Dear Sir,

As per the Car perquisite valuation rules, if the employee-owned car is used for official purpose then, it is not taxable in the hands of employee.

What is the meaning of official purpose? If the employee uses the car daily to commute to his office from home and back, can this be called as used for official purpose?

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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30 May 2011
No commuting to office from home will not be treated as official purpose .

Official purpose means doing official work means doing the work that is required for rendering your duties toward organisation .

Thanks