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

Employer-paid obligations treated as taxable perquisites when employer discharges employee's personal liabilities under income tax rules. The operative legal point cited identifies that sums paid by the employer in respect of obligations which, but for such payment, would have been payable by the assessee, fall within the scope of employer-provided benefits and trigger taxable perquisite treatment.