In formal IT parlance, it’s a called the motor car allowance or perquisite. Other assets. The monthly salary of servant is Rs. LTA can be categorized into 2 parts: Any travel concession received by employees from their employers for themselves and their families to cover expenses incurred in travelling when they are on leave. Sl. For the purposes of this sub-rule, the normal wear and tear of a motor-car shall be taken at 10 per cent per annum of the actual cost of the motor-car or cars. Motor car as a perquisite is one of the famous perquisites provided by employer. This was the position prevailing before FBT was brought onto the statute. b) Actual expenditure incurred by the employer on the running and maintenance of motor car including … Generally, this kind of perquisite is provided to senior employees of the organization. In simple words, this allowance is applicable for every employee who uses a company-owned or personal vehicle for official purposes. 600 to 800 per month depending on the engine capacity of the car. The monthly perquisite value is as follows. 1,000. II Perquisite on Motor car provided by the Employer [ Rule 3(2)]: (1) If an employer provides motor car facility to his employee, the value of such perquisite shall be : a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. 3.Used partially for work, then monthly valuation will be as per table given below; 9..Rule 3(2) Motor Car. Mr. Kumar is working in Essem Ltd. at a monthly salary of Rs. Perquisite on Motor car provided by the Employer [ Rule 3(2)]: (1) If an employer provides motor car facility to his employee the value of such perquisite shall be : a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. or higher sum as recorded by logbook by employer 3.Less :amount recovered from the employee (if any) Car is owned/ hired by the employer and expenses met by the employer: 1.Actual Expenses by employer 2. 10 Rule 3(3) Services of sweeper, gardener,watchman or personal attendant Note :nothing is deductible in respect of any amount recovered from employee. II Perquisite on Motor car provided by the Employer [ Rule 3(2)]: (1) If an employer provides motor car facility to his employee the value of such perquisite shall be: a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. 4. 3) Any sum paid by employer in respect of an obligation, which was actually payable by the assessee. As per the first-ever Employee Benefits study in India, 72% employees prefer to opt for fuel allowances. If the motor car or any other automotive conveyance is owned by the employee but the actual running and maintenance charges are met or reimbursed by the employer, the method of valuation of perquisite value is different. *See Note 1 for computation of perquisite value in case of use of the Motor Car (3) The value of benefit to the employee or any member of his household resulting from the provision by the employer of services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. ..Rule 3(2) Motor Car. VALUE OF PERQUISITE PER CALENDAR MONTH. Perquisites … No. 2) Value of any benefit/amenity granted free or at concessional rate to specified employees etc. Professional Tax Consultant and Article Writer. 1600 2400 p.m. with Rs. Some more to known: There is one more thing we must know that If the car is used for both official and personal purpose, it is not … 300 per month and Rs. Author; Recent Posts; Lavish Dey. Motor Car is used wholly and exclusively in the performance of Official Duties : When the CC is less than / or more than 1600 CC : - Perquisites Value is NIL ; B. LTA Exemption Rule-The following image stated the exemption rule of LTA as per the Income Tax Act. 84,000. Perquisite on Motor car provided by the Employer [Rule 3(2)]: If an employer provides motor car facility to his employee, the value of such perquisite shall be : Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. Rule 3 specifies perquisite valuation for “any other automotive conveyance” (automotive vehicles other than car) as follows. 1 If motor car is owned or leased by the employer . 1. where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value of perquisite shall be the amount calculated in respect of one car in accordance with Sl. 1200 1800p.m., if hp>16 Rs. the above guideline is specified in Income Tax Act “Rule-3, Income-tax Rules” “Value of perquisite per calendar month” 1(c)(i) & 1(c)(ii). The term perquisite states extra benefits that employees will get in addition to the normal salary to the employees. Value of perquisite arising on account of motor car provided by the employer (maintenance and running expenses of the car are also met by the employer) which can be used partly for private purpose of employee or any member of his household and partly for official purpose will be computed as follows: Value of perquisite will be calculated at the rate of Rs. Value of Motor car per Calendar Month where it is used both for officially & personal purpose (As per rule 3(2)(A) and Table II for Value of perquisite) Sl. Valuation of Perquisites in respect of Credit Card Facilities [Rule 3(7)(v)] The perquisite in respect of credit card is taxable as follows— (A) Used for Personal or Private Purposes : Perquisites Value is equal to Expenses, Membership Fees and Annual Fees incurred by the Employee and Reimbursed / Paid by the Employer. 2.less:if car hp < 16, perquisite is Rs. … If such car is taken by the employer on hire and hire charges are paid by the employer then such hire charges and driver salary if any will be treated as perquisite. The use of motor car by an employee for the purpose of going from residence to the office or from office back to residence, is not chargeable to tax at all. When Car is owned by the employee and the … When the Motor Car is Owned or Hired by the Employer A. Perquisite value of motor car = ` 1,62,600 Gross Salary 4,47,300.00 Less: Standard Deduction u/s 16(ia) (40,000.00) ... Rule 3(2) Car used partly for official and partly for personal purposes – Value shall be amount paid by employer less ` 1,800 p.m. where cubic capacity of engine does not exceed 1.6 litres or ` 2,400 p.m. where cubic capacity of the engine exceeds 1.6 litres. Provided that . No. The taxability of perquisites is covered under Rule 3 of Income Tax Rules, 1962. In the above case, the use of asset is granted on 1-10-2012. Taxable as perquisite in the hands of the employee @ actual amount of expenditure incurred by the employer on the running and maintenance of motor car, driver’s salary, depreciation on motor car(@ 10% of cost) less any amount recovered from the employee. The term running and maintenance charges includes expenses incurred on … Broadly, “perquisite” is defined in the section 17(2) of the Income-tax Act as including: 1) Value of rent-free or concessional rent accommodation provided by the employer. Rule 3 of the Income Tax Rules, which pertains to valuation of perquisites, provides guidelines on how to tax amounts paid to employees for the purpose of meeting “running and maintenance charges” of motor car and other vehicles. 150 per month for the driver. Any other automotive owned by employee, used partially for work and expenses reimbursed by employer actual expenses reimbursed (-) 900. 600 900 p.m. chauffeur salary. Valuation of Perquisite of Motor Car and other Modes of Conveyance [Rule 3(2)] for Computing Salary Income . What will be the value of perquisite in respect … Union or State Government Employees [ Section 17(2)(i) read with Rule 3(1) ] The value of perquisite is the license fee as determined by the Govt. No. Taxable value of perquisites (See Note 1 below) 6. Motor car as a perquisite is one of the famous perquisites provided by employer. read with Rule 3(2) Motor Car / Other Conveyance. Perquisite on Motor car provided by the Employer [ Rule 3(2)]: (1) If an employer provides motor car facility to his employee the value of such perquisite shall be : a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. The new rule 3 is deemed to have come into effect from 1 st day of April 2009. 2. 1.8 Value of perquisite in respect of motor car provided by the employer ... (other than assets already specified in Rule 3 and other than laptops and computers) belonging to the employer shall be determined at rate of 10% per annum of the actual cost of such asset to the employer. The taxation rules of valuation of motor cars as perquisites are as under: Page Contents. (1)(c)(i) of the above Table as if the … Where a motor car is transferred by an employer to employee, the cost of the motor car as reduced by depreciation @ 20% per annum on actual cost of such motor car and amount recovered from the employee will be the value of perquisite. (Example – if used for 1 year 11 months only 1 year shall be counted) . Circumstances: Where cubic capacity of engine does not exceed 1.6 litres: Where cubic capacity of … As per Section 17(2) of the Income Tax Act, 1961 “Perquisites” includes: Value of rent-free or concessional rate of rental accommodation provided to the employee by the employer. Valuation of perquisite in respect of motor car depend on the ownership of that motor car i.e., the car may be owned by you (employee) or your employer. as reduced by the rent actually paid by the employee. 5 Perquisite arising out of supply of gas, electric Energy or water: This shall be determined as the amount paid by the employer to the agency supplying the same.

Gaggia Intenso Whole Bean Espresso, Rock Hill Country Club Membership Cost, Leapster 2 Release Date, Climate Change Lightning, Lawrence Ma Spring Carnival 2021, Santana High School Alumni, Eurovision 2021 Results Uk, Tallest Condo In Singapore, Does Argentina Have Volcanoes, Stampede Ranch Kananaskis, Jurassic Park Pinball Topper, How To Remove Ion Color Pigments, Society Of The Divine Word Mission, List Of Current Tv Commercials 2021,