Professional Documents
Culture Documents
For personal use only 10% of the cost of vehicle to the employer
Valuation for conveyance - Rule 5
Any deduction from the salary of employee in this respect shall also be
If an employee takes a vehicle on rent-a-car basis and rent is paid by the
employer then the rentals paid by the employer are fully taxable [or 50% of
the rentals may be claimed as exempt if the vehicle is also being used for
office purpose] reduced from the taxable amount of this perquisite.
Conveyance allowance is fully taxable.
Salary - Exemptions under Part I, 2nd
Schedule
Pension - Clause 8 of Income Tax Rules 2002
Pension is fully exempt Irrespective of age limit subject to two conditions:
If an employee works for the same employer or any of its associates after
retirement then pension shall be taxable.
If a person receives more than one pension then exemption shall apply only to
the higher of such pensions received.
These two conditions are not applicable for a person over 60 years of age
[Circular 28 of 1991].
Salary - Exemptions under Part I, 2nd
Schedule
Commutation of pension