Please clarify whether Motor Vehicle & driver provided or reimbursed by the company is taxable for the AY 2010-11.
5 Replies
Narendra Agarwal
(Article Assistance)
(79 Points)
Replied 11 January 2010
From Ay 10-11 onwards concept of FBT is withdrawn from our tax system, so if the pupose of motor car and driver is personal and not for official use then it is taxable for the employee but if it is for official use only then employee does'nt have to pay tax, then its employer obligation
Amir
(Learner)
(4016 Points)
Replied 11 January 2010
Dear Vinod,
Just want to add what Narender rightly said that if the Vehicle & Driver is used partly for official & partly for personal purposes then also it shall be taxable in the hands of employees as salary..
For details refer the New Perks Valuation Rules notified by the Department on 18.12.2009
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 11 January 2010
if used partly in office+ partly personal-
If exp paid by emp'er -1800+900
if exp met by em'ee- 600+900
manish
(Article Assitant)
(358 Points)
Replied 11 January 2010
I agree with amir but there will be some rectification on his statement, FBT abolished so it will taxable in the hand of employee as a salary, and if the motor vehicle and driver are used partly offical and partly personal then the taxable amount depends upon the cubic capacity of engine does not exceed 1.6 litre & exceed 1.6 litre.
find the attachment
Attached File : 14 valuation 1 .xls downloaded: 217 times
RADHIKA JALAN
(agarwal)
(1521 Points)
Replied 11 January 2010
i agree with manish...................
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