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TMI BlogEmployee Car PolicyX X X X Extracts X X X X X X X X Extracts X X X X ..... The Company has an HR policy allowing employees of certain grades to use company-owned cars official purposes. This benefit is considered a 'perquisite' under the Income Tax Act when determini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng income under 'Income from Salary'. In some instances, employees may select a car exceeding their eligibility limit, with the excess amount recovered from the employee. For example, if an em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployee's eligibility is ₹10 lakh and they choose a car worth ₹15 lakh, the ₹5 lakh difference is recovered from them. The accounting treatment involves capitalizing the vehicle u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to the employee s eligibility limit, while the excess amount is deducted from the purchase price. Additionally, the Company recovers the insurance premium corresponding to the excess amount, as insu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance is based on the car's total value. In this regard, my queries are as follows: Recovery of amounts exceeding the employee s eligibility limit. Recovery of insurance premiums from employees fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r excess amount recovered - Reply By Shilpi Jain - The Reply = The invoice for the purchase of car is in the name of the employee or the Company? - Employee Car Policy - Query Started By: - Narayan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pujar Dated:- 8-1-2025 Last Replied Date:- 9-1-2025 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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