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Chapter No. 14 - Salary - Perquisites - Motor Car - (Rent Free / Concessional) - Rule 3(2)
Since car engine capacity is less than 1600cc, the perquisite will be valued as follows:
Car (1800 x 12) 21,600
Driver (900 x 12) 10,800
TOTAL (Amount recovered from X is not deductible) 32,400
If in the above example the car is used only for private purposes then, the value of perquisites will be determined as follows:
Depreciation (10% of 4,26,000) 42,600
Petrol 46,000
Driver 36,000
Maintenance 10,000
TOTAL 1,34,600
Less: Amount recovered from X 12,000
Value of Perquisite 1,22,600
Perquisite valuation of employer provided motor car treats engine capacity, driver cost, recoveries and private use depreciation. Perquisite valuation for employer provided motor cars uses a fixed monthly valuation for car and driver where engine capacity falls below the higher threshold; recoveries from the employee do not reduce that fixed valuation. If the vehicle is used exclusively for private purposes, the taxable perquisite is calculated as annual depreciation plus petrol, driver and maintenance costs, minus any amount recovered from the employee. of Press 'Enter' after typing page number.
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