Use of any vehicle provided by the
employer to an employee for journey by him from his residence to office
or from office to his residence shall not be chargeable to tax.
Where the car is owned by the employee
or employer and maintenance & running expenses including driver
salary, are met by the employer and if the car is used wholly for
official purposes, no value shall be taken as perquisite provided :
- The employer has maintained complete details of the journey undertaken for official purposes;
- The employer gives a certificate that the expenditure was incurred wholly for official duties.
Section 10(14) includes only those allowances which are
not in the nature of perquisite within the meaning of section 17(2).
Vehicle maintenance reimbursement falls within the purview of section
17(2). Hence, this exemption is not available to the employees claiming
vehicle reimbursement for official purposes.
Conveyance allowance to the
extent of Rs 800/- p.m. or Rs. 1600 p.m (for a blind person) is
allowable to all employees other than those claiming Vehicle
reimbursement to meet the expenditure for the purpose of commuting
between place of residence and place of office.
