Expenses are met or reimbursed by the employer,
If car is used so far for official purposes,
No amount is taxable provided documents as specified in
Note A are maintained by the employer.
Note A: The following conditions should be fulfilled:

1. the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage and the amount of expenditureincurred thereon;
   
   
   

2. the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performanceof official duties.

Earlier Rules: Where car is used for official purposes , not a perquisite and hence not taxable.

Where car is used for official and personal purposes:
Expenses are fully met or reimbursed by the employer,
where cubic capacity of engine does not exceed 1.6 litres,Rs. 1200/-/ if exceeds 1.6 litres, Rs. 1600/- (+Rs. 600. If chauffeur is also provided),
Where expenses for private use are fully met by the employee,
where cubic capacity of engine does not exceed 1.6 litres, Rs. 400/- if exceeds 1.6 litres, Rs. 600/- (+Rs. 600. If chauffeur is also provided),

Where car is used for personal purposes Expenses incurred by employer on running and maintenance of car plus value of normal wear and tear plus remunerationpaid to chauffeur less amount charged from employee, if any.

Where one or more car are owned or hired by the employer and the employee or member of his household are allowed the use of such motor car or all or any of such motor car(otherwise than for official duties), value of perquisite shall be amount calculated in respect of one car as if the employee had been provided one motor car for use partly inperformance of his duties and partly for private purposes and the amount calculated in respect of other car, as if provided exclusively for private purpose.

Normal wear and tear shall be taken at 10% p.a. of the acutal cost of the motor car.

Earlier Rules:
When car is owned or hired by the employer and is used partly for official and partly for private purposes and the running & maintenance expenses are met by the employer and it is difficult to identify value of private use then the perquisitevalue will be Rs.600 p.m./Rs.800 p.m. where h.p. rating does not exceed16/ exceeds 16 (plus Rs.300 p.m. where chauffeur is provided)

When car is used for private purpose,
Amount actually incurred by employer for running & maintenance of the car, normal depreciation, if it is owned by the empoyer or hire charges, if car is hired and remuneration paid to chauffeur is taxable
Where one or more cars as owned or hired by the employer are allowed to be used by the employee (otherwise than wholly and exclusively for official duties), value of perquisite shall be amount calculated in respect of one car as if the employee had been provided one motor car for use partly in performance of his duties and partly for private purposes.

Where maintenance & running expenses are met by employer

if car is used wholly for official purposes, nil

provided the documents as specified in Note A above are maintained by employer.

Earlier Rules:Where car is used for official purpose only, and expenses are met by the employer, this will not amount to perquisite.

Where maintenance and running expenses are met by employer, if car is partly used for officialpurposes and partly for private purposes, subject to Note B below, the actual expenditure incurred by employer as reduced by Rs. 1200/- /Rs. 1600/- depending upon the cubic capacity of engines and Rs. 600/- for chauffeur, if provided.

Note B:
Where the employer or the employee claims that the motor caris used wholly and exclusively in the performance of official duty or that actual expenses on the running and maintenance of the motor car owned by the employee for official purposesis more than the amounts deductible as mentioned above he may claim a higher amount attributable to official use and the value of perquisite shall be actual amount of charges met by employer as reduced by such higher amount attributableto official use of the vehicle provided conditions in Note A above are fulfilled.

If used for private purpose only, then actual amount spent on running, maintenance & normal wear and tear is taxable.

Earlier Rules:Where car is owned by employee and used for official and private purposes and expenses are met by employer, a reasonable proportion of the sum actually spent by the employer attributable to personal use is taxable.Where car is used for private purposes only, actual expenditure of the employer is taxable.

New rules for valuation of perquisites do not specify the treatment under this case, hence old rules can be taken as the base for valuing this perquisite.

Earlier Rules: If reimbursed for official use only, then not taxable.

New rules for valuation of perquisites do not specify the treatment under this case, hence old rules can be taken as the base for valuing this perquisite.

Earlier Rules:If used for private purpose only, then actual amount spent on running, maintenance & normal wear and tear is taxable.
If used partly for official and partly for private purpose, a reasonableproportion of the amount actually spent by the employer for running,maintenance & normal wear and tear is taxable.

Where expenses are met or reimbursed by employerfor the use for official purposes, no value is taxable provided documents specified in Note A above are maintained by the employer.

Earlier Rules:
Where expenses are reimbursed for the official use only, not taxable.

Where car is used for official and private purposes, subject to Note B above, the actual expenditure incurred by employer as reduced by Rs.600/- .
If used for private purpose only, then actual amount spent on running, maintenance & normal wear and tear is taxable.

Earlier Rules: Amount reimbursed by the employer for private purpose is taxable. Amount reimbursed by the employer for the use of official & private purpose, a reasonable proportion of the amount reimbursed is taxable.