Perquisites on Motor Car

[jitendra soni]

A company reimburse to its employee 10000/- as Motor car Expenses and Rs. 10000/- for driver. The Car is owned by the employee. The employee show that he incurred 10000/- as pertro expenses for commuting between place of his residence and place of duty. Please give your opinion on the following:

1) is the employee right

2) employer require any log book from the employee

3) Driver allowance is fully exempted or 900 per month is allowed as per Rule 3 of the Income Tax aCt 

[r.rajkumar kumar]

fully taxabale as per the income tax act. only 800/- deduction is eligible to claim. tks

[jitendra soni]

I think that for driver 900 is allowable every month 

AI Summary

Perquisites on motor car: reimbursement and driver allowance raise taxability, logbook evidence, and deduction eligibility questions. Company reimbursement of employee motor car expenses and a driver allowance for an employee owned car raised questions whether commuting petrol claims are correct, whether an employer must require a log book to substantiate such claims, and whether a statutory monthly driver allowance is allowable; forum replies conflict, one describing the payments as fully taxable with a limited deduction, another asserting the monthly driver allowance is allowable.