Vehicle maintanance tax benefit for personal vehicle

ramkris · 26th April 2009, 15:41

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 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.

RX135 · 26th April 2009, 18:44

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.

rajakumar · 27th April 2009, 11:22

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

prince_pervez · 27th April 2009, 12:17

I think this part is covered in the Conveyance component, nahi ? I'll check !

alpha1 · 27th April 2009, 12:18

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

kb100 · 27th April 2009, 13:43

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.

narayan · 27th April 2009, 17:11

Quote:

Originally Posted by kb100

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

paul_charles · 23rd April 2014, 12:59

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

iamswift · 23rd April 2014, 13:56

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.

scopriobharath · 23rd April 2014, 14:51

Quote:

Originally Posted by iamswift

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?

gavinimurthy · 23rd April 2014, 15:12

Diesel or petrol doesn't matter. The tax free amount is based on CC of the vehicle.

desdemona · 23rd April 2014, 16:53

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!

26th April 2009, 15:41	#1
ramkris BHPian Join Date: Oct 2007 Location: Bangalore Posts: 122 Thanked: 20 Times	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 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.
	() Thanks

26th April 2009, 18:44	#2
RX135 Senior - BHPian Join Date: Dec 2004 Location: pune Posts: 2,106 Thanked: 75 Times	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.
	() Thanks

27th April 2009, 11:22	#3
rajakumar BHPian Join Date: May 2008 Location: Bangalore Posts: 201 Thanked: 32 Times	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
	() Thanks

27th April 2009, 12:17	#4
prince_pervez Senior - BHPian Join Date: Dec 2006 Location: Redwood shores, CA, USA Posts: 4,210 Thanked: 51 Times View My Garage	I think this part is covered in the Conveyance component, nahi ? I'll check !
	() Thanks

27th April 2009, 12:18	#5
alpha1 Senior - BHPian Join Date: Apr 2007 Location: LandOfNoWinters Posts: 2,095 Thanked: 2,605 Times	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
	() Thanks

27th April 2009, 13:43	#6
kb100 Senior - BHPian Join Date: Feb 2006 Location: Bangy Boy! Posts: 1,555 Thanked: 21 Times	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.
	() Thanks

23rd April 2014, 12:59	#8
paul_charles BHPian Join Date: Apr 2008 Location: New Delhi Posts: 30 Thanked: 10 Times	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
	() Thanks

23rd April 2014, 13:56	#9
iamswift BHPian Join Date: Oct 2009 Location: Madras Posts: 204 Thanked: 122 Times	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.
	(1) Thanks

23rd April 2014, 15:12	#11
gavinimurthy BHPian Join Date: May 2010 Location: AP-!6 Posts: 162 Thanked: 10 Times	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.
	(1) Thanks

23rd April 2014, 16:53	#12
desdemona BHPian Join Date: Mar 2014 Location: gurgaon Posts: 486 Thanked: 504 Times	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!
	() Thanks