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Old 26th April 2009, 15:41   #1
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Default Vehicle maintanance tax benefit for personal vehicle

I am using my personal vehicle to commute to office. Is it possible to claim tax benefits for maintenance for the same?

Earlier there used to be a component in the pay, where vehicle maintenance was present. Now it has been removed. It is applicable for only company provided vehicles I guess.

I saw a thread dated a 3 years back http://www.team-bhp.com/forum/indian...-benefits.html (Car Allowance Tax Benefits?) on this. But I think that doesnt apply now.

With my car having engine trouble yet all, the maintenance even for being a Maruti 800 5 speed (50K kms) is getting quite expensive for me. Hence the query to get any tax benefits to mitigate a part of this atleast.

Comments on this really appreciated.
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Old 26th April 2009, 18:44   #2
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Yes. That is very much possible. The organization, where I work, still offers this benefit. However, you need to find out why your company stopped giving this benefit.
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Old 27th April 2009, 11:22   #3
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The company I work for also has this option. But it is limited to certain level and one has to pay Fringe Benefit Tax for the amount your claim out for the car maintenance
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Old 27th April 2009, 12:17   #4
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I think this part is covered in the Conveyance component, nahi ? I'll check !
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Old 27th April 2009, 12:18   #5
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I think this would come under Fringe benefit - so you would have to pay 6.xx % tax instead of the income tax based on your income slab
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Old 27th April 2009, 13:43   #6
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Ramkris

That is possible only for company leased cars.

There is a tax free conveyance component of 900/- pm or 9,800/- PA permissible under our tax laws (regardless of mode of transport other than company leased cars). Only people NOT using company leased cars can opt for this. AFAIK the former is the only benefit you can claim.

If one opts for a company leased car, 20 % of the EMI paid is added to the yearly taxable income. Any interest subsidies, waivers etc that you may enjoy can also add to your tax liability.

Last edited by kb100 : 27th April 2009 at 13:46.
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Old 27th April 2009, 17:11   #7
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Quote:
Originally Posted by kb100 View Post
Ramkris

That is possible only for company leased cars.

.
nope . even for self owned cars, you can claim maintenance expenses under your "conveyance allowance" to get tax benefit for the same. in fact even driver's salary is tax exempt under this head
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Old 23rd April 2014, 12:59   #8
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Default Re: Vehicle maintanance tax benefit for personal vehicle

What is the current status on this issue of vehicle maintenance allowance to be exempted from income tax?

My company refused to take my car on lease and reimburse the vehicle maintenance.

Any update is appreciated
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Old 23rd April 2014, 13:56   #9
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Default Re: Vehicle maintanance tax benefit for personal vehicle

If it is personal car (not in name of business), tax is based on CC of car.
If < 1600cc, you get Rs.1800/month tax free.
If > 1600cc, you get Rs.2400/month tax free.
Above this limit are taxable.
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Old 23rd April 2014, 14:51   #10
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Default Re: Vehicle maintanance tax benefit for personal vehicle

Quote:
Originally Posted by iamswift View Post
If it is personal car (not in name of business), tax is based on CC of car.
If < 1600cc, you get Rs.1800/month tax free.
If > 1600cc, you get Rs.2400/month tax free.
Above this limit are taxable.
Is this applicable to diesel cars also or is it only for Petrol cars?
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Old 23rd April 2014, 15:12   #11
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Default Re: Vehicle maintanance tax benefit for personal vehicle

Diesel or petrol doesn't matter. The tax free amount is based on CC of the vehicle.
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Old 23rd April 2014, 16:53   #12
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Default Re: Vehicle maintanance tax benefit for personal vehicle

Such tax benefits should be abolished. (1) they are regressive, giving benefits to those who are privileged (2) they complicate the tax system (3) they encourage tax avoidance, blurring into tax evasion.

The tax 'burden' is much too low in India, by ANY global comparison. Remove exemptions and such 'benefits' that pander to lobbies and: spend the increased tax monies on infrastructure!
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