personal car used for official purpose

[surya transco]

sir,

we have been paid ₹ 10000 p.m. and reflected in the salary slip as 'personal car used for official purpose' and used the vehicle for residence to office and back and also using the same vehicle for official purpose like meeting consultant offices, other government offices etc. ( Self driving)

Any exemption is permitted for the financial year 2018-19 other than ₹ 40000/- towards standard deduction.

Kindly clarify, any register is required to be maintained for using the vehicle for official purpose and whether the vehicle is used for office to residence can be treated as official purpose. Any authendication required in the register or any certificate is required to be produced to the employer for claiming exemption or it is fully taxable.

regards

Suresh.

[DR.MARIAPPAN GOVINDARAJAN]

It is better to maintain register as to the use of car for official use as well as personal use.

AI Summary

Taxability of car allowance: maintain a contemporaneous register to substantiate official versus personal vehicle use. Employer-provided car allowance described as 'personal car used for official purpose' raises whether exemptions beyond the standard deduction apply and what proof is required. The operative advice is to maintain a contemporaneous register recording business versus personal use to substantiate official-purpose claims; contemporaneous employer authentication or certificates serve as relevant evidence for tax treatment.