TDS on Salaries - Income Tax Department

This is to be increased by an amount representing normal wear
and tear of the motor car as reduced by any amount charged
from the employee.
(iii) Where motor car is used partly in performance of duties and
partly for private or personal purposes. The perquisite is
(a) Rs. 1800(plus Rs. 900 if chauffeur is provided) if running
and maintenance is borne by employer.
(b) Rs. 600 (plus Rs. 900 of chauffeur provided) where
running and maintenance for private use is fully met by
employee.
The aforesaid amounts will be increased to Rs. 2400(instead
of Rs. 1800) and Rs. 900/-(instead of Rs. 600) where the motor
car provided, has cubic capacity of engine exceeding 1.6 litres.
(iv) Where employee owns a motor car but the actual running
and maintenance charges(including remuneration of the
chauffeur if any) are met or reimbursed to him by the employer
and,
(a) where the reimbursement is for use of vehicle for official
purpose the perquisite will be nil. However specified
documents need to be maintained.
(b) Where vehicle is used partly for official and partly for
personal purposes, the perquisite is the actual amount of
expenditure incurred by the employer as reduced by
amount specified in 3.3.2(iii) above.
3.3.3 Provision of sweeper, gardener, watchman or
attendant - The value of perquisite resulting from provision of a
sweeper ,a gardener, a watchman or a personal attendant shall be
the actual cost to the employer as reduced by the amount paid by
the employee in respect of such services. ( Cost to the employer in
respect of the above will be the salary paid / payable) [Rule 3(3)]
3.3.4 Perquisite arising out of supply of gas, electric
energy or water - This shall be determined as the amount paid
by the employer to the agency supplying the same. If the supply is
from the employer’s own resources, the value of the perquisite
would be the manufacturing cost per unit incurred by the employer.
[Rule 3(4)]
3.3.5 Free/Concessional Educational Facility - Value
of the perquisite would be the expenditure incurred by the employer.
If the educational institution is maintained & owned by the employer,
the value would be nil if the value of the benefit per child is below
Rs. 1000/- P.M. or else the reasonable cost of such education in a
similar institution in or near the locality[Rule 3(5)]
3.3.6 Free/Concessional journeys provided by an
undertaking engaged in carriage or passengers or
goods Rule 3(6) –
The value of perquisite is the value at which such benefit or
such amenity is offered by such employer to the public as reduced
by the amount, if any, paid or recovered from the employer for
such benefit or amenity. However, the aforesaid will not be
applicable to employer of an airline or railways.
3.3.7 Value of certain other benefits :-
(a)
Interest free/concessional loans - The value of the
perquisite shall be the excess of interest payable at the
prescribed interest rate over, interest, if any, actually paid by
the employee or any member of his household. The prescribed
interest rate would be the rate charged by State Bank of India
as on the 1 st Day of the relevant Financial Year in respect of
loans of the same type and for same purpose advanced by it
to general public. Perquisite is to be calculated on the basis of
the maximum outstanding monthly balance method. However,
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