Valuation of car - owned by employer - owned by employee

[CAGOPALJI AGRAWAL]

1.Please opine what will be the valuation of car if it is owned by employer and used by the employee for personal purposes and exenses are met out only by employee himself. 2.If the car is owned by employee and used for pursonal purposes only and expenses are directly met out by employer?

[Surender Gupta]

(iv) any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee;

AI Summary

Tax Implications of Employer vs. Employee Owned Cars: Valuation and Expense Responsibility Explained A forum participant inquired about the valuation of a car for tax purposes in two scenarios: when the car is owned by the employer but used personally by the employee, with expenses covered by the employee, and when the car is owned by the employee but used personally, with expenses covered by the employer. A respondent highlighted that any payment made by the employer for an obligation that would otherwise be the employee's responsibility is relevant for tax considerations.