Page 198 - DCOM301_INCOME_TAX_LAWS_I

Unit 7: Income under the Head Salaries

Notes
Table 7.1: Valuation of Motor Car
S. Circumstances Engine Capacity upto Engine Capacity above
No. 1600 cc 1600 cc
1 Where the motor car is owned or hired by the employer
1 (a) The motor car used wholly Nil Nil
and exclusively in the
performance of his official.
duties;
1 (b) The motor car is used Actual amount of expenditure incurred by the employer
exclusively for the private or on the running and maintenance of motor car including
personal purposes of the remuneration paid by the employer to the chauffeur and
employee or any member of increased by the amount representing normal wear and
his household and the tear of the motor car less any amount charged from the
running and maintenance employee for such use.
expenses are met or
reimbursed by the employer.
1 (c) The motor car is used partly
in the performance of duties
and partly for private or
personal purposes of the
employee or any member of
his household and
(i) the expenses on ` 1,800 (plus ` 900, if ` 2,400 (plus ` 900, if
maintenance and running chauffeur is also chauffeur is also provided
are met or reimbursed by the provided to run the to run the motor car)
employer motor car)
(ii) the expenses on running ` 600 (plus ` 900, if ` 900 (plus ` 900, if
and maintenance for such chauffeur is also chauffeur is also provided
private or personal use are provided by the to run the motor car)
fully met by the assessee. employer to run the
motor car)
2 Where the employee owns the vehicle and the actual running and maintenance charges
including remuneration of the chauffeur are met or reimbursed to him by the employer
2 (i) The reimbursement is for the Nil Nil
use of the vehicle wholly and Provided that the Provided that the
exclusively for official documents specified in documents specified in
purposes clause (B) of this sub-rule clause (B) of this sub-rule
are maintained by the are maintained by the
employer. employer.
2 (ii) The reimbursement is for the Subject to the provisions Subject to the provisions of
use of the vehicle partly for of clause (B) of this sub- clause (B) of this sub-rule,
official purposes and partly rule, actual expenditure actual expenditure incurred
for personal or private incurred by the by the employer as reduced
purposes of the employee or employer as reduced by by the amount specified in
any member of his the amount specified in Sl. No.(1)(c)(i) above.
household. Sl. No.(1)(c)(i) above.
3 Where the employee owns any other automotive conveyance but the actual running and
maintenance charges are met or reimbursed to him by the employer
such reimbursement is for Nil Not Applicable
the use of the vehicle wholly Provided that the
and exclusively for official documents specified in
purposes; clause (B) of this sub-rule
are maintained by the
employer.
Contd...

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