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_ 5,00,000, , 2. VALUATION OF MOTOR CAR [Rule 3(2)], IMPORTANT NOTES, , 1. When car is owned or hired by the employer, the value of car Perquisite shall be included in salary], income of specified employee only,, , 2. When car is owned by the employee, the value of car perquisite shall be included in salary income|, of the employee, whether specified or non-specified., , 3. Per month denotes complete month according to the English calendar and a part of the month is, ignored for valuation of motor car, ), , (1) Car owned or hired by the employer : Car is used wholly and exclusively in the performance of his, official duties. Value shall be taken as nil provided the prescribed conditions are satisfied., (2) Car owned by employer and it is used exclusively for the private or personal purposes of the employee, or any member of his household :, (i) Actual amount of expenditure incurred on the running and =, maintenance of motor car, (ii) Remuneration, if any, paid to the chauffeur, Git) Depreciation © 10% p.a. of the actual cost of the motor car/cars, , , , , , , , Less : Amount charged from the employee ., Value of Perquisite, (3) Car is taken on lease and it is used exclusively for the private or personal purposes of employee or, any member of his household : acinus . =, (i) Amount spent on running and maintaining the car, (ii) Remuneration, if any, paid to the chauffeur, , , , Less : Amount charged from the employee, , , , Value of Perquisite, , , , , , (4) Car owned or hired by employer : Car is used partly in the performance of duties and partly for, ; Private or personal purposes of employee or any member of his household : _—, (a) If the entire expenses of maintenance and running of the motor-ear are borne by the emp! “eh, , (i) Small car (Cubic capacity of engine of the car does not exceed 16 litre) ‘ z zo Pp. a, , (ii) Large car (Cubic capacity of engine of the car exceeds 1.6 litre) : a, , ! If chauffeur is also provided, add Mm., , Scanned with CamScanner

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(6) Car owned by the employee : 7, , (A) The actual running and maintenance charges (including chauffeur’s remuneration) are met or, eimbursed by the employer and such reimbursement is for the use of the car wholly and exclusively for, fficial purposes—Value shall be taken as nil provided the prescribed conditions are satisfied., , (B) Where reimbursement of expenses of the car is wholly for personal purposes of the employee or any, nember of his household—Value shall be taken equal to amount reimbursed., , (C) Where reimbursement of expenses of the car is partly for official purposes and partly for personal |, purposes of the employee or any member of his household :, , (i) Small ear : The value of perquisite shall be the actual amount of expenditure incurred by the, , employer less ~ 1,800 per month + % 900 p.m. for chauffeur, if any, provided the prescribed, conditions are satisfied., , (ii) Large car : The value of perquisite shall be the actual amount of expenditure incurred by the, , employer less % 2,400 per month + % 900 p.m. for chauffeur, if any, provided the prescribed, conditions are satisfied., , (7) Automotive conveyance other than car owned by the employee :, (A) The actual running and maintenance charges are met or reimbursed by the em:, , A M I ployer and such, reimbursement is for the use of the vehicle wholly and exclusively for official :, as nil provided the prescribed conditions are satisfied. . purposes: Walueishellibe tale, (B) Where reimbursement of expenses of the vehicle is partly for official, yu 1, personal purposes of the employee—The value of perquisite shall be the Stal om pe of : ete, incurred by the employer less ¥ 900 p.m. provided the prescribed conditions are satisfied _—, Prescribed conditions : =, Where it is claimed that vehicle is used wholly and exclusive], , the actual expenses on running and maintenance of the vehicle Y nthe Performance of official duty 0!, , cl :, , are more than prescribed amount (Car 1,800/ & 2,400 pm. ag thence oe parbloyee, for official purpose, , p.m.), the following documents should be maintained : Y be and other automotive & 90, (a) Complete details of journey undertaken for offi, , cal ‘ :, destination, mileage and the amount of expenditure iieomed. which may include date of journe, (b) A certificate of the employer to the effect that th, , : ee : ‘, for the performance of official duties. *penditure was incurred wholly and exclusive!, , Scanned with CamScanner