Seeking Advice on Creating a Car Policy for Senior Employees – What Should We Consider?

Dear Friends,

We are planning to provide cars to our senior employees. All are requested to please provide necessary advice and policy to be formulated. Your valuable suggestions and early replies are highly appreciated.

Thanks and regards,
Rajkumar
Email: rajkumar@vatikagroup.com

Hi,

One of the ways is that the company finances a car in its name on behalf of the employee. The relevant amount, if any required to be recovered from the employee, can be deducted directly from their salary.

In this scenario, in the salary structure, you will mention in the FBT section "Car Loan". The employee will receive a tax rebate on the EMI that will be recovered by the company. If the company wishes to finance it on its own, the same procedure can be followed.

This method benefits the company as well since this transaction will result in an increase in the company's assets.

Regards,
PG

Dear Raj,

I am attaching a sample copy of the Car Scheme for your reference.

KKT