• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

FOR the 17th time, the I-T rules have been changed, this time to modify the perk regime.

The Income-Tax (17th Amendment) Rules, 2002 rewrites the clause (B) in Rule 3(2) which is applicable to instances where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes are more than the amounts deductible.

He/she may claim a higher amount attributable to official use and the value of perquisite in such a case shall be the actual amount of charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled: the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon; and the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.

Similarly, there is a change in sub-rule (7), clause (v), relating to expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card), provided by the employer or otherwise. The amount paid for or reimbursed by the employer shall be taken to be the value of perquisite chargeable to tax.

However, there shall be no value of such benefit where the expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled: Complete details in respect of such expenditure is maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure; the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.

The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity. These rules come into force on August 1, 2002. (CBDT Notification No 184/2002 dated July 23, 2002).

D.M.

Send this article to Friends by E-Mail

Stories in this Section
India offers $200-m line of credit to Africa

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line