If a car loan from employer forms part of the flexi kitty, will it be taxable salary in the hands of the employee? Please guide me. Many thanks! Venkatesh N Manager- HR
From India, Trichy
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From India, Trichy
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No, it is not taxable at the hands of employees if company is paying EMI and the same is deducted in Employees CTC. Pon
From India, Lucknow
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616From India, Lucknow
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You need to refer to the Income Tax Act for the same. Please refer to [Income Tax India](http://www.incometaxindia.gov.in/publications/9_Income_Tax_For_NRI/Chapter003.asp).
Guidelines for Car Loan Taxability
The thumb rule in your case should be: If the car EMI is not part of the CTC, not for personal use, registered in the company name, used for official purposes only (at least on paper), and registered in the company's name, then there will be no income tax applicable.
Regards,
Govind
From India, Mumbai
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Guidelines for Car Loan Taxability
The thumb rule in your case should be: If the car EMI is not part of the CTC, not for personal use, registered in the company name, used for official purposes only (at least on paper), and registered in the company's name, then there will be no income tax applicable.
Regards,
Govind
From India, Mumbai
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Thank you, sir. The purpose is to peel off this component from the taxable salary. Could the employer himself extend this loan to the employee, wherein the vehicle is hypothecated to the employer until the completion of the loan amount, and deduct the loan EMI from the monthly salary? Please clarify.
Many thanks,
Venkatesh N
From India, Trichy
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Many thanks,
Venkatesh N
From India, Trichy
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It is a car scheme offered by the employer. The vehicle will be in the name of the employer. After the EMIs, the car is transferred to employees at a nominal cost or without cost as per company policies. However, the car shall be used for official purposes during the EMI period.
Regards,
Pon
From India, Lucknow
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Regards,
Pon
From India, Lucknow
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