Valuation of Motor-car

Where the motor car is owned or hired by the employer

Small car (does not Big car ( exceeds
exceed 1.6cc) 1.6cc)
1 Car is used for official purpose only Not a perquisite Not a perquisite
2 Car is used for personal purpose only Actual expenses for Actual expenses for
running and running and
maintenance + 10% of maintenance + 10% of
actual cost of car- actual cost of car-
amount recovered amount recovered
from employee from employee
3 Car is partly used for official purpose
and partly for personal purpose
(i) All the expenses for Rs. 1,800 p.m.+Rs. 900 Rs. 2,400 p.m.+Rs. 900
running and maintaining p.m. (if chauffer is also p.m. (if chauffer is also
the car are met by provided with the car) provided with the car)
employer
(ii) Running and maintenance Rs. 600 p.m.+Rs. 900 Rs. 900 p.m.+Rs. 900
expenses are met by p.m. (if chauffer is also p.m. (if chauffer is also
employee for personal provided with the car) provided with the car)
purposes
Where the motor car is owned by the employee
Small car (does not Big car ( exceeds
exceed 1.6cc) 1.6cc)
1 Car is used for official purpose only Not a perquisite Not a perquisite
2 Car is used for personal purpose only Actual expenses for Actual expenses for
running and running and
maintenance + 10% of maintenance + 10% of
actual cost of car actual cost of car
- amount recovered - amount recovered
from employee from employee
3 Car is partly used for official purpose
and partly for personal purpose
Actual expenditure Actual expenditure
Running and maintenance expenses incurred – {Rs. 1,800 incurred – {Rs. 2,400
are met by employer p.m.+Rs. 900 p.m. (if p.m.+Rs. 900 p.m. (if
chauffer is also chauffer is also
provided with the provided with the
car)} car)}