Dear All,
What is tax exemtion limit of car running expenses component of salary structure?
What are the terms and conditions for the same? If company pay to an employee Rs. 1600/- as conveyance & Rs. 400000/- as car running allowance per month, will it be fully tax exemted?
Towards car running allowance, the employee provides petrol bills etc.
Awaiting for your reply
Thanks
Shib
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Income Tax on Car Running Expense
Replies (2)
if the company did not added the car running expense in salary component, but booked as expenses of company, then no worry, as the bills would go to company expenditure account under travelling and conveyence and not salary.
if the amount is added in salary component, then would get taxable, as the conveyence allowance is limited to 1600 per month exepmption, ( earlier to budget 2015 it was limited to 800 per month)
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