## Use of Motor Car — Perquisite Valuation
Valuation depends on (a) owner of the car (employer / employee) and (b) purpose of use (office / personal / both).
### Case 1: Car used exclusively for OFFICE
Fully Exempt — no perquisite.
### Case 2: Car used exclusively for PERSONAL
Taxable Value =
- Depreciation @ 10% p.a. of actual cost (or hire charges, if hired)
- + Running & Maintenance expenses (if paid by employer)
- + Driver's salary (if paid by employer)
### Case 3: Car used PARTLY OFFICE & PARTLY PERSONAL
| Car owned by | R&M paid by | Taxable Value |
|---|---|---|
| Employer | Employer | ₹ 1,800 p.m. (engine ≤ 1600 cc) / ₹ 2,400 p.m. (> 1600 cc) |
| Employer | Employee | ₹ 600 p.m. (≤ 1600 cc) / ₹ 900 p.m. (> 1600 cc) |
| Employee | Employer | R&M paid by employer less ₹ 1,800 / ₹ 2,400 p.m. |
| Employee | Employee | Not a perquisite |
### Driver Adjustment
If driver is also provided by employer in Case 3, add ₹ 900 p.m. to the above value.
### Note
1600 cc = 1.6 litre engine capacity.