Ravinder Singh (Manager - Finance & Accounts) (31 Points)
22 July 2009I am getting car allowance as part of my salary. Can i get some exemption or deduction under income tax act for exp incurred on wear tear and running cost of my two cars.
I am also getting fuel reimbursement, driver salary and toll tax & parking chg on monthly basis beside to my monthly salary
Pls tell me asap
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 25 July 2009
Exemption of Car Allowance= amount paid by company as allowance less any amount received by company from u towards repairs etc.
Krutesh Patel
(ACA)
(727 Points)
Replied 25 July 2009
In case of Car allowance if you are using car only for personal purpose, entire amount received will be taxable as salary.
If you have incurred any expenditure for use of car for office purpose, then amount equal to amount born by you will be exempted.
CAclubindia
