Rule 3(2) Defines Taxable Perquisites for Employer-Provided Cars, Details Valuation Based on Use and Ownership

Rule 3(2) outlines the valuation of perquisites related to motor cars for income tax purposes. If an employee owns the car and covers expenses, it is not considered a perquisite. When the employer reimburses expenses, the balance after deductions is taxable. For employer-owned or hired cars, specific monthly perquisite values apply based on engine capacity and driver provision. Conditions for official use exemptions include maintaining detailed journey logs and employer certification. Multiple cars are valued differently, with only one considered for mixed use. Travel between office and residence is not taxable, and non-car vehicles have distinct rules.

---

---

---