Example:-X owns car (1400cc). He uses it partly for official purposes and partly for private purposes. During the previous year 2014-15, he incurs a sum of ₹ 40,000 on running and maintenance of car. Besides, he has engaged a driver (salary ₹ 24,000). The employer reimburses the entire expenditure of ₹ 64,000. Log book of the car is not maintained.
11 August, 2015
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Perquisite valuation for motor car under Rule 3(2): employer reimbursements reduced by official-use deduction, affecting taxable perquisite. Valuation of a motor car perquisite requires deducting the official-use portion from employer reimbursements before treating the balance as a taxable ... Summary
Perquisite valuation for motor car under Rule 3(2): employer reimbursements reduced by official-use deduction, affecting taxable perquisite.
Valuation of a motor car perquisite requires deducting the official-use portion from employer reimbursements before treating the balance as a taxable perquisite; absent a log book a fixed deduction method is applied, while contemporaneous usage evidence permits apportionment of the reimbursement by the documented official-use percentage.
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