Perquistes

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2013 If an employee is entitled to reimbursement of Rs 10000 of car expenses for a car owned by the employee should the employer deduct
10000-2400-900 and give him the reimbursement or give him 10000 and the employee considers on Rs 10000-2400-900 for his perquiste taxation

CA Prashant Gupta

CA Prashant Gupta (Expert)
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23 February 2013 it depends for what purpose car is used:

if wholly for office work then no value. but keep a record for journey and employer will give certificate.
if car is wholly used for private purpose then full taxable
if partly used for office then 10000-2400-900 will be applicable

employer will give full 10000/- and will deduct TDS as 10000-2400-900 or accordingly above mentioned