1. #1
    Unregistered

    Is car maintenance an approved tax saving reimbursement component of pay structure?

    I work in Bangalore. I have heard about the ‘car maintenance’ as a tax saving reimbursement component of pay structure. I want to get the details about it. Is it approved by LAW or is it the company‘s policy?

  2. #2
    Barnali Array
    Join Date
    May 2013
    Posts
    206

    Re: Is car maintenance an approved tax saving reimbursement component of pay structure?

    Hi,

    It is purely depends on the policy the company follows...some company follows providing car hire reimbursements to the employees for some grade and above and conveyance allowance for some grades....

    For Car hire charges the amount is not reflected in your income and the amount will issued to the third party vendor by deducting 10% TDS....hence if yoiu have 30% tax bracket you will save straight way 20% tax....

    For Conveyance allowance, the amount is paid to you and added to your total income after getting a deduction of Rs. 800 p.m. for tax benefit... hence only Rs. 9,600 per year is the amount on which you will get the tax benefit....

    If your company allows to get the car hire reimbursement then you can opt for the same...
    However remember.. the amount which is given to other person is taxable in the hands fo that people.

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