Comment posted on Gold ETFs v/s Gold Mutual Funds by Amar.
Hi Pankaj, Thanks for your prompt reply.
I am bit confused, my company has a car reimbursement and Driver salary component as part of the salary structure, which is very high amount than 1800 + 900 (it is around 7 times more). Why would they allow me to claim more than 1800+900, if anything above that is taxable. Also, I have used your tax calculator FY 2012-13, as per this entire amount for Car Reimbursement and Driver Salary falls under “Non – Taxable Allowances”. Can you please help me understand this.
Amar also commented
- I want to understand the tax liability for Car allowance. For an employee owned Car, the Company can reimburse fuel, maintenance, Chauffeur’s Salary expenses subject to the production of proof of the amount spent.
1) Is this amount 100% tax free
2) What does below line means “For a car of cubic capacity below 1.6 liters tax exemption is provided at Rs.1,800 per month for running/maintenance. An additional of Rs.900 is exempted from tax for chauffer salary.”
Is only 1800+900 tax free.