As per sub-rule 2(2)(ii) of recently notified new Perk Valuation rules, if the car is owned by employee which he uses for official as well as personal use, the entire amount reimbursed to the employee for car runnning and maintenance after deducting amount specified in Sl. no. (1)(c)(i) would be taxed as perk value. Any differing view? Even if the employee spends huge amounts on running and mainenence, produces bills and gets reimbursement only paltry sum as per (1)(c)(i) would be exempt but major chunk would be taxed as perquisite. If this view is correct is there any way out?
1 Replies
Amir
(Learner)
(4016 Points)
Replied 12 January 2010
Dear Umesh,
In this case Employee can deduct higher amount if following conditions r fulfilled:-
1) Log Book - containing- Details of journey for official purposes like date, destination,mileage & amount of expenses.
2) Obtain a certificate from his employer(like his immediate boss) & furnish it to Salary depatment certifying that the expenses was incurred exclusively for official purposes...
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