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[Cites 0, Cited by 9] [Section 3] [Entire Act]

Union of India - Subsection

Section 3(2) in Income Tax Rules, 1962

(2)
(A)The value of perquisite by way of use of motor car to an employee by an employer shall be determined in accordance with the following Table, namely:-
Value of Perquisite Per Calendar Month
Sl. No. Circumstances Where cubic capacity of engine does not exceed1.6 litres Where cubic capacity of engine exceeds 1.6litres
(1) (2) (3) (4)
(1) Where the motor caris owned or hired by the employer and-(a) is used whollyand exclusively in the performance of his official duties;(b) is usedexclusively for the private or personal purposes of the employeeor any member of his household and the running and maintenanceexpenses are met or reimbursed by the employer;(c) is used partly inthe performance of duties and partly for private or personalpurposes of his own or any member of his household and-(i) the expenses onmaintenance and running are met or reimbursed by the employer;(ii) the expenses on running and maintenance forprivate or personal use are fully met by the assessee. No value:Provided that thedocuments specified in clause (B) of this sub-rule are maintainedby the employer.Actual amount ofexpenditure incurred by the employer on the running andmaintenance of motor car during the relevant previous yearincluding remuneration, if any, paid by the employer to thechauffeur as increased by the amount representing normal wear andtear of the motor car and as reduced by any amount charged fromthe employee for such use.Rs. 1,800 (plus Rs.900, if chauffeur is also provided to run the motor car)Rs. 600 (plus Rs. 900, if chauffeur is alsoprovided by the employer to run the motor car) No value:Provided that thedocuments specified in clause (B) of this sub-rule are maintainedby the employer.Actual amount ofexpenditure incurred by the employer on the running andmaintenance of motor car during the relevant previous yearincluding remuneration, if any, paid by the employer to thechauffeur as increased by the amount representing normal wear andtear of the motor car and as reduced by any amount charged fromthe employee for such use.Rs. 2,400 (plus Rs.900, if chauffeur is also provided to run the motor car)Rs. 900 (plus Rs. 900, if chauffeur is alsoprovided to run the motor car)
(2) Where the employeeowns a motor car but the actual running and maintenance charges(including remuneration of the chauffeur, if any) are met orreimbursed to him by the employer and(i) suchreimbursement is for the use of the vehicle wholly andexclusively for official purposes;(ii) such reimbursement is for the use of thevehicle partly for official purposes and partly for personal orprivate purposes of the employee or any member of his household. No value:Provided that thedocuments specified in clause (B) of this sub-rule are maintainedby the employer.Subject to the provisions of clause (B) of thissub-rule, the actual amount of expenditure incurred by theemployer as reduced by the amount specified in Sl. No. (1)(c)(i)above. No value:Provided that thedocuments specified in clause (B) of this sub-rule are maintainedby the employer.Subject to the provisions of clause (B) of thissub-rule, the actual amount of expenditure incurred by theemployer as reduced by the amount specified in Sl. No. (1)(c)(i)above.
(3) Where the employeeowns any other automotive conveyance but the actual running andmaintenance charges are met or reimbursed to him by the employerand-(i) suchreimbursement is for the use of the vehicle wholly andexclusively for official purposes;(ii) such reimbursement is for the use ofvehicle partly for official purposes and partly for personal orprivate purposes of the employee. No value:Provided that thedocuments specified in clause (B) of this sub-rule are maintainedby the employer.Subject to the provisions of clause (B) of thissub-rule, the actual amount of expenditure incurred by theemployer as reduced by the amount of Rs. 900. Not applicable
Provided that 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-car or all of any 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. No. (1)(c)(i) of Table II as if the employee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes and the amount calculated in respect of the other car or cars in accordance with Sl. No. (1)(b) of Table II as if he had been provided with such car exclusively for his private or personal purposes.
(B)Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in Sl. No. 2(ii) or 3(ii) of Table II, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount of charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled :-
(a)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;
(b)the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.
Explanation. - 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.