For mixed official/personal use where the employer owns the car and pays running costs, the taxable monthly value is ₹1,800 for engine capacity up to 1.6…
For mixed official/personal use where the employer owns the car and pays running costs, the taxable monthly value is ₹1,800 for engine capacity up to 1.6 litres or ₹2,400 above 1.6 litres, plus ₹900 for a chauffeur.
Official-only use can be nil with prescribed records; personal-only use uses actual employer cost/hire, chauffeur and 10% wear-and-tear less recovery. Employee-paid running costs use lower mixed-use values.
Identify ownership, engine size, payer of running cost, use category and chauffeur; maintain logbook/certificate for official use; subtract employee recovery where permitted.
A 2-litre employer-owned car with employer-paid costs and chauffeur used partly personally gives ₹3,300 per month taxable perquisite.
The example is an illustration, not a substitute for the taxpayer's facts. A change in status, period, payment mode, document, city, asset, relationship or scheme can change the result.
Search pages often state a rate or limit without identifying the governing base. The calculation must distinguish gross receipt from taxable profit, tax from TDS, a deduction from an exemption, salary from business income, and an accounting entry from the tax treatment.
| Decision point | Required treatment |
|---|---|
| Legal year | Use the Act, rules and notification effective for the income or transaction period |
| Taxpayer category | Confirm residence, age, entity, employee/business status and regime |
| Calculation base | Use the statutory definition rather than CTC, net bank receipt or accounting label |
| Ceiling or rate | Apply actual-amount, percentage, shared, lifetime and gross-income limits in sequence |
| Documentation | Link every input to an invoice, statement, contract, certificate or official record |
| Final output | Show tax, surcharge, cess, interest and TDS/TCS credits separately |
This page is written around the entities and concepts search engines expect for the topic: Rule 3, perquisite, rent-free accommodation, company car, salary. They are used only where relevant and are connected to the live calculator and knowledge hub rather than repeated mechanically.
For the complete rules on this topic, see the core guide: Perquisites Taxation: Rent-Free Accommodation, Company Car & Other Benefits.
See the broader Income Tax & Salary knowledge hub for related rules and calculators on this topic.
For mixed official/personal use where the employer owns the car and pays running costs, the taxable monthly value is ₹1,800 for engine capacity up to 1.6 litres or ₹2,400 above 1.6 litres, plus ₹900 for a chauffeur.
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