Vehicle details

Employers provide company-owned or hired cars to their employees, and employees may have a car used for official and personal use. Here you can update vehicle details to calculate the value of the perquisites, which will be added to the employee’s salary when arriving at the taxable income.

To add vehicle details #

• To enter the vehicle details for the employee, enable the “Do you want to add a vehicle for the employee?” toggle button. And, if you wish not to update the vehicle details to the employee, keep it in the ‘No’ option.
• As of now, we are supporting only “Employer-owned”, so by default, we have selected the “owner of the car” as Employer-owned (or) hired for an employee. Employer-owned cars are assets purchased in the company’s name and the employees who buy cars from their own funds for personal use are employee-owned cars. 
• Whenever the employee pays maintenance expenses such as periodic maintenance, spares, and repair costs, you can select the “Maintenance cost met by Employee” option. Whenever the maintenance cost is spent by the employee and later reimbursed by the employer, you can choose ” Maintenance cost met by the employer”.
• Select the cubic capacity of the company-owned car either up to 1600CC or greater than 1600CC.
• You can select ‘Yes’ whenever the employer provides the car driver and the ‘No’ option when the employee takes care of it.

• Finally, press the save button to apply the changes.

Note: The vehicle perquisite value differs from the reimbursements claims under the flexible benefits plan component such as driver reimbursements, fuel reimbursements etc. Once the employee provides the necessary bills, they will get “reimbursements”. But, perquisite value will be added automatically to the employee’s salary for the vehicle maintenance of a company-provided car. The employee will not be required to file any bills, and this amount will not be tax-free.