Tax Finance Info: Valuation of Motor Car Perquisites

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<b><span style="font-size: large;">Valuation of Motor Car Perquisites | Salary Income</span></b></div>
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<span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 16.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Valuation of motor car perquisites</span></b></span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Employees are generally paid in
terms of salary, but to motivate and encourage them, they are provided with
certain extra benefits along with salary. These types of benefits are termed as
“Perquisites” in normal parlance. Such perquisites whether monetary or non-
monetary, are taxable along with salary under the head “Income from Salaries”.</span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Perquisites may be in the way of
providing free accommodation, domestic servants, education to the children of
employee at concessional rate, etc. One of such perquisite is Motor Car
perquisite. The perquisite of Motor Car is taxable under section 10(14)(i) in
the manner prescribed in Rule 3 (2) of the Income Tax Act. </span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">  </span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><b><span style="font-size: large;">Section 10(14) </span></b></span></div>
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<b style="mso-bidi-font-weight: normal;"><i><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">10</span></i></b><i><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(14)(i)any such special allowance
or benefit, not being in the nature of a perquisite within the meaning of
clause (2) of Section 17, specifically granted to meet expenses wholly,
necessarily and exclusively incurred in the performance of the duties of an
office or employment of profit, [as may be prescribed], to the extent to which
such expenses are actually incurred for that purpose;</span></i></div>
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<i><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(ii) any such allowance granted to
the assessee either to meet his personal expenses at the place where the duties
of his office or employment of profit are ordinarily performed by him or at the
place where he ordinarily resides, or to compensate him for the increased cost
of living, [ as may be prescribed and to the extent as may be prescribed];</span></i></div>
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<b><i><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Provided</span></i></b><i><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> that nothing
in sub-clause (ii) shall apply to any allowance in the nature of personal allowance
granted to the assessee to remunerate or compensate him for performing duties
of a special nature relating to his office or<span style="mso-spacerun: yes;"> 
</span>employment unless such allowance is related to the place of his posting
or residence. </span></i></div>
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<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The above provisions can be understood with regards the use of
motor car provided in the course of employment to the employee. Use of such
motor car can be in the following circumstances and the taxability of the same
is also prescribed in Rule 3 in the following manner as represented in the
following flowchart to make it simpler to understand:</span></div>
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<span style="font-size: large;"><b><u><span style="font-family: "Calibri","sans-serif";">Note (1)</span></u></b></span></div>
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<u><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></u></div>
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<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">When the Motor Car is owned by the employee and the running and
maintenance expenses are borne by the employer and also the motor car is used
wholly and exclusively for the official purpose, the limits above in point
2(ii) and point 3(ii) shall not apply.</span></div>
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<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">It means that the amount of perquisite will be calculated in the
following manner:</span></div>
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<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Actual amount of charges met or reimbursed by
the employer<span style="mso-tab-count: 1;">           </span>XXX</span></div>
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<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less:<span style="mso-spacerun: yes;">   </span>A</span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">mount attributable to official use of the vehicle<span style="mso-spacerun: yes;">     </span><span style="mso-tab-count: 2;">                          </span><span style="mso-spacerun: yes;">           </span><u>(xxx)</u></span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                                </span><b>Value
of Perquisite<span style="mso-tab-count: 6;">                                                                                    </span>xxx</b></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The above is allowed subject to conditions as
follows:</span></b><br />
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<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-autospace: none; text-indent: -.25in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">a)<span style="font: 7.0pt "Times New Roman";">     
</span></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Complete details of journey undertaken for
official purpose is being maintained by employer such as date, destination,
mileage and expenditure incurred for such journey; and</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-autospace: none; text-indent: -.25in;">
<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">b)<span style="font: 7.0pt "Times New Roman";">     
</span></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Employer certifies that the journey was
exclusively for business purpose.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"></span></div>
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</ul>
<span style="font-size: large;"><b><span style="font-family: "Calibri","sans-serif";">When One ore more Motor Car is owned / hired by the
employer and used by the employee:</span></b></span><br />
<ul style="text-align: left;">
</ul>
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<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In the case where one or more are used by the
employee or it is being allowed to use for household purpose by any household
member of the employee, the value of perquisite will be considered as:</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">For one Car as if it is partly used for the
official purpose and partly used for the personal purpose and the value of
perquisite will be calculated as explained in Point 1 (c ) (i).</span></div>
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<br /></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">For the another car/cars(if more than one) as
if it is used fully for the personal purpose and the value of perquisite will
be calculated as explained in Point 1 (b).</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Let us understand the above topic with the
help of an example:</span></div>
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<span style="font-size: large;"><b><span style="font-family: "Calibri","sans-serif";">Example:</span></b></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mr. A is an Employee of XYZ Ltd. He is
provided with a perquisite of using company’s car along with Chauffer. Also he
has been provided with the benefit that two cars of company can be used by any
member of his family (Without Chauffer). Details of expenditure are:</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Actual reimbursement by XYZ Ltd. For car used
by Mr. A<span style="mso-tab-count: 3;">                                               </span>Rs.
50,000 p.a.</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Actual reimbursement by XYZ Ltd. For 2 cars
used by Mr. A’s Family<span style="mso-tab-count: 1;">         </span>Rs. 80,000
p.a.</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Calculate Value of Taxable Perquisite.</span></div>
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<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br clear="all" style="page-break-before: always;" />
</span></b>

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<span style="font-size: large;"><b><span style="font-family: "Calibri","sans-serif";">Solution:</span></b></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">For Car used by Mr.A</span></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Actual reimbursement by XYZ Ltd. For car used
by Mr. A<span style="mso-tab-count: 2;">                  </span> 50,000</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less:<span style="mso-spacerun: yes;">  
</span>Allowable as deduction as per Rule 3<span style="mso-spacerun: yes;"> 
</span>(Note 1)<span style="mso-tab-count: 3;">                                      </span><u>(32,400)</u><span style="mso-tab-count: 1;">                </span>17600</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">For 2 Cars used by Mr.A’s Family</span></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Actual reimbursement by XYZ Ltd. For car used
by Family<span style="mso-tab-count: 1;">              </span><span style="mso-tab-count: 1;">                </span> 80,000</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less:<span style="mso-spacerun: yes;">  
</span>Allowable as deduction as per Rule 3<span style="mso-spacerun: yes;"> 
</span>(Note 2)<span style="mso-tab-count: 3;">                                      </span><u>(<span style="mso-spacerun: yes;">   </span>NIL<span style="mso-spacerun: yes;">  </span>)</u><span style="mso-tab-count: 1;"> </span><u>80,000</u></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 1;">                </span><b>Total
Value of Taxable Perquisite for use of Motor car<span style="mso-tab-count: 2;">                  </span></b><span style="mso-tab-count: 2;">                                </span><b><u>97,600</u></b></span></div>
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<br /></div>
<u><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br clear="all" style="page-break-before: always;" />
</span></u>

<br />
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<u><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Note 1</span></u></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Allowable deduction as per explanation in
Point 1(c )(i)</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">i.e. ` 1,800 (plus ` 900, if chauffeur is
also provided )<span style="mso-tab-count: 1;">         </span>= (1800+900)*12=
Rs. 32,400</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<u><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Note 1</span></u></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Allowable deduction as per explanation in
Point 1(b )<span style="mso-tab-count: 1;">     </span>= NIL</span></div>
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<br /></div>
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<u><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Note 3</span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">It is assumed that cubic capacity of engine
is less than1.6 litres</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Sale</span></b><b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> of Motor Car to the Employee by the employer</span></b></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">When the employer sales the Motor Car to his
employee, the value of perquisite is equal to the loss on sale of such motor
car to the employer because it is deemed that such loss is incurred to give
indirect benefit to the employer. Let us understand the point with an example.</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Example:</span></b></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Car Purchased as on 1.4.2011<span style="mso-tab-count: 2;">                      </span>Rs. 4,50,000</span></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Rate of Depreciation<span style="mso-tab-count: 4;">                                                      </span>15%</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Car sold to employee on 31.03.2013<span style="mso-tab-count: 1;">        </span>Rs. 2,00,000</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Calculate taxable perquisite in the hands of
Employee.</span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Solution</span></b></div>
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<br /></div>
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<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 1;">                </span><span style="mso-tab-count: 1;">                </span>Purchase of Car as on 1.4.2011<span style="mso-tab-count: 2;">                 </span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;"><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">              </span></span>  </span> 4,50,000</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less: <span style="mso-spacerun: yes;">  </span>Depreciation @ 15%<span style="mso-tab-count: 4;">                                                          </span> <u><span style="mso-spacerun: yes;"> </span>(67,500)</u></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">         
</span><span style="mso-tab-count: 2;">                      </span>WDV as on
31.03.2012<span style="mso-tab-count: 3;">                          </span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 3;"><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">              </span></span>          </span>
3,82,500</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less:<span style="mso-spacerun: yes;">  </span><span style="mso-spacerun: yes;"> </span>Depreciation @ 15%<span style="mso-tab-count: 4;">                                                          </span> <u><span style="mso-spacerun: yes;"> </span>(57,375)</u></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">     </span><span style="mso-spacerun: yes;">     </span><span style="mso-tab-count: 2;">                      </span>WDV
as on 31.03.2013<span style="mso-tab-count: 3;">                        </span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 3;"><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">              </span></span>            </span>
3,25,125</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Less: <span style="mso-spacerun: yes;">  </span>Sale to Employee <span style="mso-tab-count: 4;">                                                               </span><u>(2,00,000)</u></span></div>
<div class="MsoNormal" style="margin-left: 1.0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<b><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-language: GU; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Taxable Perquisite<span style="mso-tab-count: 3;">                                          </span>
1,25,125</span></b></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
</div>
<br /></div>

Valuation of motor car perquisites | Salary Income

Valuation of Motor Car Perquisites | Salary Income Valuation of motor car perquisites Employees are generally paid in terms ...

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