Hi,
What are tax benefits when car is provided by Employer to Employee?
Motor car facility provided by the employer is included in the income under head ‘Salaries’ under section 17(2)(iii) read with Rule 3(2). Motor car facility is the perquisite and perquisites are the part of taxable income subject to the provisions of the act.
There are a few scenarios related to this benefits
Car owned by the employer – Value of car used exclusively for official purposes
Car owned by the employer – Value of car used for both official and personal purposes
Car owned by the employer – Value of car used only for personal purposes
Car owned by the employee