Vehicle Perquisite Calculation for Employer-provided Cars

In some organisations, employers provide vehicles to their employees for transportation. This will be counted as a perquisite offered to the employee by the organisation. Zoho Payroll supports the handling of the vehicle perquisite in employees’ salaries. Employers can enable this perquisite for employees for whom the company has provided cars. To do this:

Add Vehicle Details Vehicle Details

If you wish to modify the perquisite amount, you can enter the values under Employees > Employee profile > Salary Details > Perquisites > Cars/Other automotive. Any difference between the pre-configured amount and the new amount will be shown as a correction amount in the payslip.


Calculations

Based on the different combinations of the options given, the perquisite value will be calculated and displayed. The perquisite for each month is given below:

Let us consider a scenario where we work out the perquisite details for an employee having a company-provided car with a 1600CC engine and a driver.

Now, for the company-provided car, ₹1800 will be provided for car maintenance and ₹900 for driver amounting to a perquisite amount of ₹2700. The perquisite value in the image below is calculated for two months.

Manual Perquisite Addition

For reimbursements, once the employee submits the necessary bills, they will get

Of this ₹6200, tax exemption would be provided for reimbursement amount excluding perquisite amount, i.e., ₹6200 - ₹2700 = ₹3500.

TDS worked out for the entire fiscal year in terms of perquisite would be as follows:

Perquisite in TDS Sheet

At the moment, Zoho Payroll supports automatic perquisite for only employer-owned / company-hired vehicles.

However, perquisite for employee-owned car can be calculated once the employer enters the perquisite details manually under Employees > Employee profile > Salary Details > Perquisites > Cars/Other automotive.

Employee-owned cars will be calculated as a perquisite only if the car is used for both private and official purposes. So, the perquisite values will be:

Here too, only the perquisite amount will be considered for tax calculation out of the total reimbursement amount (if any).

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