b

M =Maintenance cost + 4 1 D = Depreciation @ 10% of actual cost of the car. However, if the car is not owned by employer then actual hire charge incurred by employer shall be considered 2400 p.m. in case of higher capacity car and 1800p.m for lower capacity car 900p.m. In case of higher capacity car and 600 pm for lower capacity car Higher capacity car means a car whose cubic capacity of engine exceeds 1.6 litres Conditions to be fulfilled for claiming higher deductions: The employer has maintained complete details of journey undertaken for official purpose, which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon; and The employer gives the certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties, 5 Chauffeur / Driver If chauffeur is also provided, then salary of chauffeur is further to be added to the value of perquisite (as computed above). However, if car is used for both le official and personal purpose then 900 pm (irrespective of higher on lower capacity of car) is to be taken as value of chauffeur perquisite Notes a) If motor car is provided at a concessional rate then charges paid by employee for such car, shall be reduced from the value of perquisite b) The word "month" denotes completed month. Any part of the month shall be ignored. c) When more than one car is provided to the employee, otherwise than wholly and exclusively for office purpose, the value of perquisite for One car shall be taken as car is provided partly for office and partly for private purpose le 1.800 or 2.400 p.m. (plus 900 p.m. for chauffeur, if provided) and For other car(s), value shall be calculated as car(s) are provided exclusively for private purpose . f24 d) Conveyance facility to the judges of High Court or Supreme Court is not taxable, e) Use of any vehicle provided to an employee for joumey from residence to work place or vice versa is not a taxable perquisite ILLUSTRATION 21 Sonam, has been provided a car (1.7 ltr.) by his employer Vikash Ltd. The cost of car to the employer was 3,50.000 and maintenance cost incurred by the employer 30,000 p.a. Chauffeur salary paid by the employer ? 3,000 p.m. Find value of perquisite for Sonam for the A.Y.2019-20, if the car is used for: a) Office purpose b) Personal purpose c) Both purpose In case (b) and (c), employee is being charged 15,000 p.a for such facility