Page 1 :
I, SECOND CATEGORY (Specified employees) :, , x, , 4. Motor Car (Rule 3 (2) ) : Where the car is owned by the emplyee and the, expenses are met by him there is no question of perquisite. Similarly if the, car (either owned by employee or Provided by the employer) is used |, exclusively for official purposes there is no taxable perquisite even if the, , employer meets the entire expenses. In other cases the valuation is done, in the following manner :, , a) Owned by the employee and expenses are met by the employer :, , i) Car is wholly for personal use, the P.V, is actual expenses icurred and, drivers salary., , ii) Car is partly for personal use, actual expenses as reduced by :, Rs.1800 p.m. if cubic capacity of the engine does not exceed 1.6, litres., , Rs. 2,400 p.m. if cubic compacity of the engine exceeds 1.6 litres., Consider drivers salary @ Rs. 900.p.m. as PV. if driver is provided., , Eg. 1: X owns a car and uses partly for personal use. The expenses met by, the employer amounted to Rs. 24,000. The prequisite value will be :, , a) if the C. C. is 1.6 litres or less : Rs. 24,000 - 21,600 = Rs. 2,400, b) if the C. C. is above 1.6 litres : Rs. 24,000 - 28,800 = NIL, , Eg. 2: X owns a car of 1.8 C.C. He uses it for both Official and personal, Purposes. The company meets the expenses Rs. 36,000 and pays, Rs. 12,000 towards driver's salary. Find out the PV of the car., , , , | Expenses met by the employer [36,000 |, | Less : As the c.c. is above 1.6 litres (2,400x12) 28.800), | 7,200, , Add : Driver's salary 900x12 oe, | Perquisite value of car Rs. | 18,, , b) re, , Owned by the employer and the expenses are met by the employee :, , i ; ire charges, l) Car is wholly for personal use, the P.V. is wear and tear or hire 9, , “ + driver's salary., , 79, Salatiag, , Scanned with CamScanner

Page 2 :
ii) Car is partly for personal use, —————, , C.C. is 1.6 litres or less C.C. is more than 1.6 litres, Rs. 600 p.m. Rs. 900 p.m., Add : Rs. 900 p.m. driver's salary., , c) Owned by the employer and expenses are met by the employer i) Car is wholly for personal use, the P.V. is running and maintenance, expenses, wear and tear or hire charges, driver's salary,, , ii) Car is partly for personal | use, , ;, C.C. is 1.6 litres or less C.C. is more than 1.6 litres, Rs. 1,800 p.m. Rs. 2,400 p.m., , Add : Driver's salary of Rs. 900 p.m., , d) In the case of any other conveyance provided by the employer, the, , value of peruisite shall be :, i) If used for private purposes only, running and maintenance expenses, , and depreciation :, ii) If used party for private purposes, actual expenditure incured by the, employer as reduced by an amount of Rs. 900 p.m., , e) Where the employer owns or hires one or more cars and the employee, or any member of his household are allowed the use of such car or cars, otherwise than exclusively for official purposes, (i.e. for both official and, private purposes the valuation is done as under :, , (i) the PV of one car is Rs. 1,800 p.m upto 1.6 litres C.C.: Rs.2,400, p.m. if C.C. is more than 1.6 Itrs ; Rs. 900 p.m. if driver is provided., , (ii) in respect of other cars the PV is calculated as if it is used exclusively, for private purposes. The actual expenditure + normal wear and, tear (i.e. 10% of the actual cost the car/cars) + driver's salary is, taken as perquisite., , Eg. 1: X is allowed to use a car with 1.4 C.C. owned by the company. The, PV of the car will be:, (a) if the expenses of private use are met by X : Rs. 600 p.m., (b) if the expenses of private use are met by Co. : Rs. 1,800 p.m, (c) if the driver is provided : add Rs. 900 p.m., , Eg. 2: is allowed to use a car with 1.8 C. C. owned by the company for, both purposes. Its PV will be :, , (a) if the expenses of private use are met by Y : As. 900 p.m., (b) if the expenses of private use are met by co. : Rs. 2,400 p.™(c) if the driver is provided : add Rs. 900 p.m., , , , 80 salaries, , Scanned with CamScanner