TDS on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2011 Earlier company provide car facility to employee for to & fro i.e. from home to his residence and back. Car was in the name of company. Now company has sold this car and ask employee to use his own car for to & fro. Company has agreed to provide him an additional allowance of Rs. 4,700/- pm. Is it taxable ? If it is taxable then is there any solution to make it tax free ?

Pl suggest urgently.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

24 February 2011 This allowance is tax free upto Rs. 800/- per month. rest is taxable.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

24 February 2011 Get an approval from your company that the car is used both for personal & official use & take reimbursement of petrol bills.

Then the perk rule will apply.

Take this 4700/- against petrol bills & you will get a benefit of 1800 or 2400 per month depending upon the engine capacity of your car

Upgrade to CAclubindia Pro. Subscribe Now!

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

24 February 2011 for car of =1.6 CC : taxable amount would be (4700 - 2400) = 2300/- per month