Taxability of Motor Car Benefits

If the car  is used for official purpose then it is not considered perquisites, it won’t  create  any effect whether it is owned by employer or employee.

If car is owned by employer and expenses are borne by employer :-

• When it is used for private use only :-
  • Total of :-

1. Actual expenditure on car
2. Remuneration to chauffeur
3.  10% of the cost of car (normal wear & tear)

         Less: Amount charged from employee

• When it is used for  partly official and partly personal :-
  • 900 p.m for driver
  • And then 1800 or 2400 for 1.6 liters and above consequently.
  • In case  the expenses are borne by employee then in addition to 900 P.M for driver and
  • 600/900  for engine upto 1.6 liter and above consequently.

No need of thanks renu..u r doing a great job..i just became a part of it..by provinding few which i know..:)

Provident fund

• In case of recognized provident fund empoyer’s contribution in  excess of 12 % will be taxable.

• And interst in the same case in excess of 8.5 % will be taxable.

Employee’s contribution  is exempt under every provident fund under deduction 80 C except Unrecognised provident fund

actually thanks is  a gesture ....when we don't use words

and I m really glad that u  participated in it

LEAVE ENCASHMENT

• Government employee: fully exempted from tax
• Non-Govt. employee:
  • 30 days maximum leave is available in a year.
  • For this purpose salary will be taken 10 month avg salary+ DA+ Commission ( If terms of employment so provide.
  • Maximum  limit for leave encashment is Rs.300,000.
  • In this case 10 months average salary will be  immediately preceding the retirement.

Retrenchment compensation maximum limit is Rs500,000 . Least of the  Amount received or amount define under Industrial dispute act will   be exempt.

Tomorrrow it will be house property.  I will try to submit the salary notes in file section so that  everyone can read it easily. Bcz word file can't be attached here.

Regards ..

Renu

and don't forget to clear ur doubts here .... 

and if u find any mistake in my notes , then also let me know......

Thanks for you contribution.........

Thank u renu...!!!

Find the File Attached Herewith.....

very nice renu............u always rock n so ur post.........:)

Thanks for sh

@ arun ...

advance salary is treated on receipt basis. Suppose If x receives 15000 out of his april 2011  on 16 march.2011

Then this 15000 will be added to his salary of march and be taxable in previous year 2010-11.

and apr month salary will be deducted from 15000 from tax computation also.

as salary is taxed on accrual or receipt basis whichever is earlier.

Hi can u put this type of notes for Assessment Procedure

renu if u dont mind can u share any prolems plzz....i am not able to do total income problems......can u post a problem of max. provisions

Thanx renu 4 ur precious contribution..... keep on updating by all dis easy tips u r really a 9ce teacher........