Accountancy Forum

Rule{6c(a)} motor vehicle is owned by employer and maintained by employer and motor vehicle is used for personal and business use, then the amount to be included in taxable salary income is lessor of the followings amount
Rs 3,600 or
50% of the running and maintainance costs

Note; this was the situation before finance bill 2006, what is the new situation now


Rule{6c©}motor vehicle is owned by employer and maintained by employee and motor vehicle is use for personal and business use,then conveyance allowance less the higher of the followings shall be included in the taxable salary income

Rs 2,400 or
7.5%of the basic salary
what is the changed situation after finance bill

Rule[6c(e)] motor vehicle is owned by employee and maintained by employer and it is used for personal as well as for private use then conveyance allowance less the higher of the followings shall be taxable;

Rs 1,200 or
2.5%of the basic salary

what is the changed situation after fianace bill2006

dear members am in deep trouble,as our tax teacher have left the college becoz of some problems with the management,and now we do not find any solutions to our problems,so i and our class mates have decided to put our problem to this forum for solution

regards
shukla