Salary income Tax Calculation for year 2008-2009

[Zaheer Iqbal]

Rule 5 of Income Tax Rule 2002 Says that

"the value of convenyance provided by the employer to the employee shall be taken equal to an amount as below-
i) Partly for personal and partly for officail use

5% of the

a) cost to the employer for acquiring the motor vehicle; or
b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer.

ii) 10% of
a)the cost to the employer for acquiring the motor vehicle; or
b)the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer