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Valuation of perquisites. - (1) the value of motor vehicle for the purposes of sub-section (3) Of section

13 shall be determined as under:

(a) Where the motor vehicle is provided by an employer wholly for private use of the employee tenpercent of the cost to employer for acquiring the motor vehicle or, if the motor vehicle is taken on

lease by the employer, ten percent of the fair market value of the motor vehicle at the

commencement of the lease. The value as determined at the time of commencement of lease shall

be adopted for the purpose of this rule on the transfer of the motor vehicle at any time under the

lease agreement.

(b) Where the motor vehicle is provided by an employer partly for private use of the Employee:

(i) Where the salary does not exceed Rs. 600,000/- 5% of the basic salary.

(ii) Where the salary exceeds Rs.600, 000/ - 50% of the value determined under clause (a).

C (i) where motor vehicle is hired by the employer for private use by the employee, the amount of hire

charges paid by the employer shall be added as income of the employee.

6A. Motor vehicle provided exclusively for personal or private use. Where a motor vehicle is provided

by the employer for the use of the employee exclusively for personal or private purposes, there shall be

included in the employees income an amount equal to-

(a) The sum actually expended by the employer on running and maintenance of the motor vehicle(including normal depreciation, where the motor vehicle is owned or the amount of rental where

the motor vehicle is hired by the employer) if the motor vehicle is used by one employee; and

(b) the sum arrived at by dividing the amount as computed under sub-rule (a) by the number of personsentitled to use the motor vehicle if the motor vehicle is used by more than one employee.

6C. Motor vehicle used partly for personal and partly for business purposes.- Where the motor vehicle is

used by the employee partly for his personal and partly for business purposes, there shall be included in

his income,-

(a) where the motor vehicle is owned or hired by the employer and its running (including hire andmaintenance) costs are also borne by the employer and the motor vehicle is used exclusively by oneperson, 50 per cent of the sum actually expended on the running of the motor vehicle (including

maintenance and normal depreciation where the motor vehicle is owned or the amount of rental

where it is hired by the employer) or Rs.3600, whichever is the less;

(b) where the motor vehicle is owned or hired by the employer and its running (including hire andmaintenance) costs are also borne by the employer and the motor vehicle is used by more than one

person, the sum arrived at by dividing the amount representing 50 per cent of the sum actually

expended by the employer on the running of the motor vehicle (including maintenance and normal

depreciation where the motor vehicle is owned or the amount of rental where it is hired by the

employer) by the number of such persons or Rs.2400, whichever is the less;

(c) where the motor vehicle is owned or hired by the employer and its running cost is borne by theemployee, the amount, if any, by which the conveyance allowance paid by the employer exceeds

Rs.2400 or 7.5 per cent of the basic salary, whichever of these two sums is the higher;

(d) where the motor vehicle is owned by the employee and its running (including hire and maintenance)costs are also borne by him the amount by which the conveyance allowance paid by the employer

exceed Rs.3600 or 10 per cent of the basic salary, whichever of these two sums is the higher; and

(e) where the motor vehicle is owned by the employee and its running (including hire and maintenance)costs are borne by the employer, the amount, if any, by which the conveyance allowance paid by

the employer exceeds Rs.1200 or 2.5 percent of the basic salary, whichever of these two sums is the

higher.

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6D. Motor vehicle used exclusively for business purposes.- Where the motor vehicle is used by the

employee exclusively for business purposes, there shall be included in his income,-

(a) where the motor vehicle is owned or hired by the employer and its running (including hire and

maintenance) costs are also borne by him, the whole amount of the conveyance allowance, if any,

receivable by the employee;

(b) where the motor vehicle is owned or hired by the employer and its running (including hire and

maintenance) costs are borne by the employee, the amount, if any, by which the conveyance allowance

paid by the employer exceeds the actual expenditure incurred by the employee on the running

(including maintenance) of the motor vehicle;

(c) where the motor vehicle is owned or hired by the employee and its running (including maintenance)

costs are borne by him, the amount, if any, by which the conveyance allowance paid by the employer

exceeds Rs.4800 or 10 per cent of the basic salary, whichever of these two sums is the higher; and

(d) where the motor vehicle is owned by the employee and its running (including maintenance) costs are

borne by the employer, the amount, if any, by which the conveyance allowance paid by the employer

exceeds Rs.2400 or 7.5 per cent of the basic salary, whichever of these two sums is the higher.