TDS liabilty of the emplyer on Driver reimbursement


27 March 2010 Dear All

If the driver salary is reimbursed to the officers of High rank, whether it would be wholly, exempt from tax. IF

Car is owned by the employee
Driver is exclusively used for the official purposes.
Records of Driver use are maintained in this regard.

Some Labour Advocate opined that as the driver is exclusively used for the official purposes. It would attract ESI, PF also.

Pls all should comment or think about it .

It is very important as a tax planning tool.

Thanx in advance

28 March 2010 If the car is owned by the employee and used fully for offical purpose - driver salary not taxable

If the car is used fully personal- fully taxable

If the part office and part personal- the actual salary less Rs.600 p.m is taxable

28 March 2010 Dear Ramesh

What about PF / ESI obligations for driver, as he is fully used for the office




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