Driver salary slip india how to#
Driver salary slip india driver#
Driver salary slip india full#
Driver salary slip india free#

The annual normal wear and tear value is calculated as 10% of the actual cost of the car.

Driver salary slip india driver#

When the car is used only for personal purpose, the total perquisite value for the purpose of taxation is the following.ДЄctualВ amount of expenditure incurred by the employer on the running and maintenance of motor car including driver salary, if any. Ii) The car is used exclusively for personal purposes of the employee or any member of his household. The employer should issue a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.ДЇrom the above, it should be clear that the fuel expense reimbursement shall be fully non-taxable only if the car is wholly used for official purposes and the organization maintains details of journeys undertaken by the employee. The employer shouldВ maintain complete details of journey undertaken for official purpose including date of journey, destination, mileage, and the amount of expenditure incurred. Please note that the following conditions should be met for the reimbursement to be tax free.

Driver salary slip india free#

For example, if a company reimburses Rs 1 lakh per month for the purpose of fuel expenses to an employee, the entire Rs 1 lakh shall be tax free as long as the car is used solely for official purposes. This is irrespective of fuel and other car running and maintenance expense amount reimbursed to an employee. When the car is used only for official purpose, the perquisite value for the purpose of taxation is Rs 0.

I) The car is used wholly and exclusively forВ official duties. The monthly perquisite value is as follows. The car may be used by the employee or any member of the employeeвЂ™s household. The car could be owned or hired by the employer and provided to the employee. The monthly perquisite values (the salary amount to be added to the taxable income) for fuel expense reimbursement under different circumstances are as follows.Д®mployer provides the car and reimburses the fuel expense amount to employee Cubic capacity of the car engine: Lesser than/equal to or more than 1.6 litres.Partly for official and partly for personal purposes.Car ownership вЂ“ Provided by the employer or owned by the employee.Factors that determine taxability of fuel expense reimbursement for carДЄccording to Rule 3, the following factors determine the extent to which fuel expense reimbursement should be taxed. The term running and maintenance charges includes expenses incurred on petrol/diesel.

Driver salary slip india how to#

Rule 3 of the Income Tax Rules, which pertains to valuation of perquisites, provides guidelines on how to tax amounts paid to employees for the purpose of meeting вЂњrunning and maintenance chargesвЂќ of motor car and other vehicles. In fact, there is no direct reference to petrol/fuel expense reimbursement in the income tax law. Payroll managers would do well to note that there is no blanket 100% tax benefit on fuel expense reimbursement. We find employees getting paid significant sums of money under the head and receiving 100% tax exemption to the extent fuel receipts are submitted.

Tax the amount for which receipts are not submitted.

Driver salary slip india full#

Provide full tax exemption to the extent receipts are submitted.

Seek petrol/diesel purchase receipts from employees.

Pay a certain sum of money as remuneration under the head each month.

The typical payroll treatment for the head of pay is as follows: Organizations use вЂњFuel Expense ReimbursementвЂќ as a pay component for tax saving, particularly for members of middle and senior management. Taxability of fuel expense reimbursement to employees -Part I